This document discusses carbon taxation and emissions trading schemes. It notes that while carbon dioxide emissions are a market failure, pricing carbon can help reduce emissions through market signals. However, the current European Trading Scheme has issues like price volatility and limited participation. The document argues that a harmonized international carbon tax may be a better approach but has not been preferred politically. It also describes the European compromise between carbon taxes and emissions trading, which exempts some emissions covered by the trading scheme from taxation.
A general overview on carbon tax and carbon trading describing it's mechanism and advantages and disadvantages. A summarization of their effects on economy and environment remarking the conclusion
This webinar will review the various mechanisms agreed in the Kyoto Protocol with a particular focus on Clean Development Mechanism. The value at each stage of the CDM project will be explained, and market prices for carbon credits will be analysed.
In order to illustrate this type of project, real case studies carried out by Deuman will be discussed. Voluntary carbon credits will also be analysed.
http://www.leonardo-energy.org/webinar-carbon-market-and-cdm-projects
On April 30, WRI hosted a dynamic town hall discussion about key issues related to pricing carbon in the United States. Putting a price on carbon can provide a clear and consistent economic signal that can help shift market growth in the coming decades toward a climate-smart, low-carbon economy.
The new resource "Putting a Price on Carbon: A Handbook for U.S. Policymakers" was released. Find out more at www.wri.org/carbonpricing
There is no better way to spend a Monday night than joining one of B-Hive’s famous FIN AND TONICs in New York City! This time CO2Logic had the honor to be co-host for this memorable event. We had the pleasure of gathering at Flanders Investment & Trade’s beautiful space as our experts discussed the future of Sustainable Finance.
Carbon finance for beginners (Kyoto Protocol and its mechanisms; Current stat...UNDP Eurasia
The document provides an overview of the Kyoto Protocol and its carbon market mechanisms. It discusses how the Kyoto Protocol established mandatory greenhouse gas emission reduction targets for developed countries and introduced market-based mechanisms, including emissions trading, clean development mechanism (CDM), and joint implementation. It also summarizes the CDM project cycle and eligibility requirements, highlighting that CDM projects must demonstrate emission reductions are additional and result in sustainable development benefits.
Green economy aims to increase investments and growth while substantially reducing carbon footprints. It promotes resource efficiency, clean technologies, and sustainable production and consumption patterns. A green economy is driven by investments that reduce emissions, enhance efficiency, and prevent biodiversity loss. It emphasizes the intersection between environment and economy.
Cap and Trade Emissions - Carbon Tax or Carbon Pricing - 101paul young cpa, cga
This presentation discusses cap and trade systems for carbon emissions. It defines cap and trade as a system that puts a limit on pollution and allows companies to buy and sell permits to pollute. It then explains how cap and trade systems work by having a central authority allocate a limited number of permits that polluters must hold in order to emit specific quantities of pollution. The presenter provides an overview of issues with the cap and trade systems in California and Europe, including a surplus of permits that has driven prices down in both regions.
A general overview on carbon tax and carbon trading describing it's mechanism and advantages and disadvantages. A summarization of their effects on economy and environment remarking the conclusion
This webinar will review the various mechanisms agreed in the Kyoto Protocol with a particular focus on Clean Development Mechanism. The value at each stage of the CDM project will be explained, and market prices for carbon credits will be analysed.
In order to illustrate this type of project, real case studies carried out by Deuman will be discussed. Voluntary carbon credits will also be analysed.
http://www.leonardo-energy.org/webinar-carbon-market-and-cdm-projects
On April 30, WRI hosted a dynamic town hall discussion about key issues related to pricing carbon in the United States. Putting a price on carbon can provide a clear and consistent economic signal that can help shift market growth in the coming decades toward a climate-smart, low-carbon economy.
The new resource "Putting a Price on Carbon: A Handbook for U.S. Policymakers" was released. Find out more at www.wri.org/carbonpricing
There is no better way to spend a Monday night than joining one of B-Hive’s famous FIN AND TONICs in New York City! This time CO2Logic had the honor to be co-host for this memorable event. We had the pleasure of gathering at Flanders Investment & Trade’s beautiful space as our experts discussed the future of Sustainable Finance.
Carbon finance for beginners (Kyoto Protocol and its mechanisms; Current stat...UNDP Eurasia
The document provides an overview of the Kyoto Protocol and its carbon market mechanisms. It discusses how the Kyoto Protocol established mandatory greenhouse gas emission reduction targets for developed countries and introduced market-based mechanisms, including emissions trading, clean development mechanism (CDM), and joint implementation. It also summarizes the CDM project cycle and eligibility requirements, highlighting that CDM projects must demonstrate emission reductions are additional and result in sustainable development benefits.
Green economy aims to increase investments and growth while substantially reducing carbon footprints. It promotes resource efficiency, clean technologies, and sustainable production and consumption patterns. A green economy is driven by investments that reduce emissions, enhance efficiency, and prevent biodiversity loss. It emphasizes the intersection between environment and economy.
Cap and Trade Emissions - Carbon Tax or Carbon Pricing - 101paul young cpa, cga
This presentation discusses cap and trade systems for carbon emissions. It defines cap and trade as a system that puts a limit on pollution and allows companies to buy and sell permits to pollute. It then explains how cap and trade systems work by having a central authority allocate a limited number of permits that polluters must hold in order to emit specific quantities of pollution. The presenter provides an overview of issues with the cap and trade systems in California and Europe, including a surplus of permits that has driven prices down in both regions.
This document discusses carbon taxes and their impacts. It covers how carbon emissions are causing climate change and environmental damage costing $200 billion annually. Two ways to reduce emissions are direct carbon taxes or cap and trade systems between companies. While carbon taxes aim to reduce negative externalities, they can increase costs for businesses and households. A tax of $23 per tonne in Australia had little environmental impact but did increase electricity and gas costs slightly for households. The conclusion argues the focus should be on developing green energy technologies through research instead of just controlling emissions.
This document defines a green economy as one that improves human well-being and reduces environmental risks and ecological scarcities. It discusses the principles, features, tools, myths and benefits of a green economy. A green economy creates jobs in renewable energy, sustainable agriculture and manufacturing, public transportation, and green infrastructure. It debunks myths that a green economy inhibits growth and is only for wealthy nations, providing examples where green jobs have lifted people out of poverty. A green economy is economically sound because it invests in natural capital and ecosystem services that support tourism, recreation and public health.
Green Economy and Sustainable DevelopmentAkshita Jain
The document discusses green economy and sustainable development. It defines a green economy as one that reduces pollution and carbon emissions through investments in clean energy and resource efficiency. The goals of a green economy are shared prosperity and societal resilience through economic, social and environmental pillars of inclusive growth. Key areas of a green economy include renewable energy, green buildings, clean transportation, land and water management, and waste reduction through recycling and reuse. Transitioning to a green economy can help achieve the goals of sustainable development.
To save the Environment, we have to first improve our economy and lead to green economy from present brown economy by the following means shown in presentation.
Its all about How environmental issues were raised and how world nation ended up signing for this Paris agreement.
Then there are impacts of America's withdrawal plus role of China and India.
This document compares and contrasts carbon taxes and cap-and-trade policies for reducing greenhouse gas emissions. A carbon tax sets a fee per ton of carbon emissions to make polluting more expensive and encourage energy efficiency and cleaner energy. Cap-and-trade sets a limit on total emissions and allows companies to trade permits to emit. It provides an economic incentive to reduce emissions. Both approaches aim to lower emissions over time, but a carbon tax provides more predictability while cap-and-trade may face fewer political obstacles. An ideal solution would involve international cooperation on carbon pricing and flexible allowance prices with a focus on developing alternative energy sources.
The document discusses carbon trading mechanisms and provides context on its history and concepts. It outlines that the Union finance minister has proposed reducing the tax on gains from carbon trading from 30% to 10% to incentivize investments in energy efficiency and clean energy. This lower tax rate aims to support energy security and climate change goals by making carbon trading more rewarding and attractive for foreign firms while transitioning away from fossil fuel subsidies. Examples of existing carbon trading programs and their impacts are also presented.
REDD+ (Reducing Emissions from Deforestation and Forest Degradation)Janathakshan Gte Ltd
The presentation prepared by Janathakshan on REDD+ (Reducing Emissions from Deforestation and Forest Degradation) initiative in Sri Lanka. SL became a UN-REDD partner country in 2009. Government fo Sri Lanka (GoSL) through the forest department (FD), department of wildlife conservation (DWC) and the CCS with many stakeholders and support of 3 UN organisations has jointly implemented a UN-REDD National Program (2013 to 2017).
Carbon markets 101 introduces the market mechanisms under the Kyoto Protocol and related initiatives. It helps executives and managers understand emerging business issues around carbon trading, emission reduction projects and carbon monitoring.
Green technologies primarily affect biodiversity by reducing emissions and other environmentally harmful outputs that contribute to climate change and habitat pollution. The main green technologies that are discussed on this page have clean energy, green transportation, and efficiency applications. The replacement of old technologies should be done with newer versions that reduce emissions by eliminating fossil fuels or increasing efficiency. Replacing current, dirty technologies with green versions is the only way to preserve the many species that are highly susceptible to climatic and environmental changes caused by humans. Replacing old technologies worldwide would be a very expensive project, so we propose replacing dirty technologies when they become obsolete with the cleanest options that are available at that time.
This document provides an overview of market-based instruments (MBIs) for environmental regulation. It discusses the need for MBIs and examples like cap-and-trade programs and environmental offsets. Cap-and-trade programs set a limit on pollution and allow trading of permits between companies. Offsets allow pollution in one area if equivalent reductions are made elsewhere. The document also examines MBIs compared to traditional command-and-control regulation and examples of MBIs used in India, including a case study of the US Acid Rain Program sulfur dioxide cap-and-trade system.
Presentation On Green Economy For Sustainable DevelopmentAsif A. Kabani
The document discusses transitioning to a green economy. It defines a green economy as one that improves human well-being and equity while reducing environmental risks. A green economy is low-carbon, resource efficient, and socially inclusive. It explores the relationship between sustainable development and poverty reduction. The document also discusses greenhouse gases, their sources, and their impact on climate change. It notes that human activities like burning fossil fuels and deforestation have increased the atmospheric concentrations of greenhouse gases.
This is a group work carried out in the field of economics of sustainability. It looked at hidden cost and externalities. Also tried to appraise the emergence of carbon economics and carbon tax systems.
Green growth can be seen as a way to pursue economic growth and development, while preventing environmental degradation, biodiversity loss, and unsustainable natural resource use.
For the short term, green growth can transform the opportunity of the crisis to ensure a more sustainable economic recovery.
For the long term, it will promote new, greener sources of growth.
The OECD is working on policy recommendations to help governments achieve greener growth. The presentation gives an overview of the findings to date and the next steps. It mentions innovation, taxes, jobs and development issues, as well as how to measure progress towards greener growth.
This document discusses carbon emissions trading in the EU and alternatives like a carbon tax. It covers:
1) The EU Emissions Trading Scheme which creates a market for carbon allowances in an effort to reduce emissions cost-effectively. However, the scheme has faced criticisms like over-allocation of quotas and price volatility.
2) A potential alternative of a carbon tax which would directly price carbon and provide incentives for emission reductions, but faces challenges in agreement and measuring emissions accurately.
3) Key considerations in evaluating different policy approaches include their effectiveness in changing behavior, encouraging innovation, reducing emissions at lowest cost, and achieving global participation. Putting an accurate price on carbon is necessary but not sufficient.
Presentation By Shri Mahesh Pandya, Director, Paryavaranmitra shown at The institution of Engineers, Gujarat State Center, Ahmedabad
Note: Views expressed by the author are his own. Placing this presentation here does not mean IEI GSC is in agreement with the same.
This document discusses carbon taxes and their impacts. It covers how carbon emissions are causing climate change and environmental damage costing $200 billion annually. Two ways to reduce emissions are direct carbon taxes or cap and trade systems between companies. While carbon taxes aim to reduce negative externalities, they can increase costs for businesses and households. A tax of $23 per tonne in Australia had little environmental impact but did increase electricity and gas costs slightly for households. The conclusion argues the focus should be on developing green energy technologies through research instead of just controlling emissions.
This document defines a green economy as one that improves human well-being and reduces environmental risks and ecological scarcities. It discusses the principles, features, tools, myths and benefits of a green economy. A green economy creates jobs in renewable energy, sustainable agriculture and manufacturing, public transportation, and green infrastructure. It debunks myths that a green economy inhibits growth and is only for wealthy nations, providing examples where green jobs have lifted people out of poverty. A green economy is economically sound because it invests in natural capital and ecosystem services that support tourism, recreation and public health.
Green Economy and Sustainable DevelopmentAkshita Jain
The document discusses green economy and sustainable development. It defines a green economy as one that reduces pollution and carbon emissions through investments in clean energy and resource efficiency. The goals of a green economy are shared prosperity and societal resilience through economic, social and environmental pillars of inclusive growth. Key areas of a green economy include renewable energy, green buildings, clean transportation, land and water management, and waste reduction through recycling and reuse. Transitioning to a green economy can help achieve the goals of sustainable development.
To save the Environment, we have to first improve our economy and lead to green economy from present brown economy by the following means shown in presentation.
Its all about How environmental issues were raised and how world nation ended up signing for this Paris agreement.
Then there are impacts of America's withdrawal plus role of China and India.
This document compares and contrasts carbon taxes and cap-and-trade policies for reducing greenhouse gas emissions. A carbon tax sets a fee per ton of carbon emissions to make polluting more expensive and encourage energy efficiency and cleaner energy. Cap-and-trade sets a limit on total emissions and allows companies to trade permits to emit. It provides an economic incentive to reduce emissions. Both approaches aim to lower emissions over time, but a carbon tax provides more predictability while cap-and-trade may face fewer political obstacles. An ideal solution would involve international cooperation on carbon pricing and flexible allowance prices with a focus on developing alternative energy sources.
The document discusses carbon trading mechanisms and provides context on its history and concepts. It outlines that the Union finance minister has proposed reducing the tax on gains from carbon trading from 30% to 10% to incentivize investments in energy efficiency and clean energy. This lower tax rate aims to support energy security and climate change goals by making carbon trading more rewarding and attractive for foreign firms while transitioning away from fossil fuel subsidies. Examples of existing carbon trading programs and their impacts are also presented.
REDD+ (Reducing Emissions from Deforestation and Forest Degradation)Janathakshan Gte Ltd
The presentation prepared by Janathakshan on REDD+ (Reducing Emissions from Deforestation and Forest Degradation) initiative in Sri Lanka. SL became a UN-REDD partner country in 2009. Government fo Sri Lanka (GoSL) through the forest department (FD), department of wildlife conservation (DWC) and the CCS with many stakeholders and support of 3 UN organisations has jointly implemented a UN-REDD National Program (2013 to 2017).
Carbon markets 101 introduces the market mechanisms under the Kyoto Protocol and related initiatives. It helps executives and managers understand emerging business issues around carbon trading, emission reduction projects and carbon monitoring.
Green technologies primarily affect biodiversity by reducing emissions and other environmentally harmful outputs that contribute to climate change and habitat pollution. The main green technologies that are discussed on this page have clean energy, green transportation, and efficiency applications. The replacement of old technologies should be done with newer versions that reduce emissions by eliminating fossil fuels or increasing efficiency. Replacing current, dirty technologies with green versions is the only way to preserve the many species that are highly susceptible to climatic and environmental changes caused by humans. Replacing old technologies worldwide would be a very expensive project, so we propose replacing dirty technologies when they become obsolete with the cleanest options that are available at that time.
This document provides an overview of market-based instruments (MBIs) for environmental regulation. It discusses the need for MBIs and examples like cap-and-trade programs and environmental offsets. Cap-and-trade programs set a limit on pollution and allow trading of permits between companies. Offsets allow pollution in one area if equivalent reductions are made elsewhere. The document also examines MBIs compared to traditional command-and-control regulation and examples of MBIs used in India, including a case study of the US Acid Rain Program sulfur dioxide cap-and-trade system.
Presentation On Green Economy For Sustainable DevelopmentAsif A. Kabani
The document discusses transitioning to a green economy. It defines a green economy as one that improves human well-being and equity while reducing environmental risks. A green economy is low-carbon, resource efficient, and socially inclusive. It explores the relationship between sustainable development and poverty reduction. The document also discusses greenhouse gases, their sources, and their impact on climate change. It notes that human activities like burning fossil fuels and deforestation have increased the atmospheric concentrations of greenhouse gases.
This is a group work carried out in the field of economics of sustainability. It looked at hidden cost and externalities. Also tried to appraise the emergence of carbon economics and carbon tax systems.
Green growth can be seen as a way to pursue economic growth and development, while preventing environmental degradation, biodiversity loss, and unsustainable natural resource use.
For the short term, green growth can transform the opportunity of the crisis to ensure a more sustainable economic recovery.
For the long term, it will promote new, greener sources of growth.
The OECD is working on policy recommendations to help governments achieve greener growth. The presentation gives an overview of the findings to date and the next steps. It mentions innovation, taxes, jobs and development issues, as well as how to measure progress towards greener growth.
This document discusses carbon emissions trading in the EU and alternatives like a carbon tax. It covers:
1) The EU Emissions Trading Scheme which creates a market for carbon allowances in an effort to reduce emissions cost-effectively. However, the scheme has faced criticisms like over-allocation of quotas and price volatility.
2) A potential alternative of a carbon tax which would directly price carbon and provide incentives for emission reductions, but faces challenges in agreement and measuring emissions accurately.
3) Key considerations in evaluating different policy approaches include their effectiveness in changing behavior, encouraging innovation, reducing emissions at lowest cost, and achieving global participation. Putting an accurate price on carbon is necessary but not sufficient.
Presentation By Shri Mahesh Pandya, Director, Paryavaranmitra shown at The institution of Engineers, Gujarat State Center, Ahmedabad
Note: Views expressed by the author are his own. Placing this presentation here does not mean IEI GSC is in agreement with the same.
Key Messages on Aligning Policies, Kurt Van Dender - OECDOECD Environment
This document summarizes key messages from a presentation on aligning policies for carbon pricing. It discusses the need for deep emissions cuts to meet climate goals and incentives for low-carbon investments. It shows that effective carbon rates vary widely across countries and sectors. While carbon pricing is important for mitigation, other policies may also be needed to address market failures and support emerging technologies. Policy alignment is important to provide strategic incentives for low-carbon infrastructure and consider interactions between carbon pricing and other policies like corporate taxation.
Introduction to the EU Emission Trading SystemLeonardo ENERGY
The EU ETS Directive is the centrepiece of the European Union’s climate policy. It has created the European Union’s Emissions Trading Scheme (EU ETS), which is a unique and quite com-plex system.
The EU ETS establishes a scheme for greenhouse gas emissions allowances trading within 31 European countries. Its functioning is based on a “cap and trade” principle, which sets a cap on the total amount of greenhouse gases that can be emitted by all participating installations. Within the cap, companies receive or buy emission allowances which they can trade with one another as needed.
Today, the EU ETS covers almost half of EU’s emissions and is part of the daily life of a large number of companies.
The EU ETS Directive represents the backbone of EU’s action against climate change, but it also works in combination with several other pieces of legislation in a delicate balance.
Our European system has very much evolved during the last 15 years. The existing legislation operates until 2020. It has set a greenhouse gas emissions reduction target in line with EU’s 2050 low carbon economy roadmap. The time has also come to discuss the post-2020 period and the European Commission will soon put forward a new proposal with a 2030 emissions reduction target.
Being the first one to have been setup, the European scheme is analysed and taken as exam-ple in other regions of the world where emissions trading starts being implemented.
This course aims at giving a presentation of the EU ETS Directive, the main features of the sys-tem, the balance with other pieces of EU legislation and at offering perspectives for the on-coming review of the scheme.
Prof. Maria da Graça Carvalho - European Commission - The EU Strategy Towards...Shane Mitchell
The document summarizes the European Union's strategy towards becoming a low carbon society. The strategy includes:
1) Setting binding targets to reduce greenhouse gas emissions by 20% by 2020 and increase the share of renewables to 20% by 2020.
2) Improving energy markets through measures like unbundling energy production from transmission.
3) Expanding the emission trading scheme to more sectors and gases and improving its functioning.
4) Supporting low carbon technologies through funding programs and initiatives in areas like renewable energy and energy efficiency.
5) Promoting sustainable urban development and transport through programs like Concerto, Civitas, and the Covenant of Mayors.
The document discusses the scale of changes needed to limit global warming to 450 parts per million of CO2, including improving energy efficiency, increasing renewable energy sources, deploying carbon capture and storage technologies, and increasing nuclear power. It emphasizes that a coordinated global policy approach is required, including government policies to support low-carbon technologies through all stages from research to large-scale demonstration and deployment. Cap-and-trade systems and international cooperation on projects are presented as important policy mechanisms.
This presentation created and addressed by Gonzalo Saenz de Miera in the intensive three day course from the BC3, Basque Centre for Climate Change and UPV/EHU (University of the Basque Country) on Climate Change in the Uda Ikastaroak Framework.
The objective of the BC3 Summer School is to offer an updated and multidisciplinary view of the ongoing trends in climate change research. The BC3 Summer School is organized in collaboration with the University of the Basque Country and is a high quality and excellent summer course gathering leading experts in the field and students from top universities and research centres worldwide.
Yvon Slingenberg, Head of Unit B1- Implementation of ETS, DG CLIMA, European ...European Journalism Centre
The EU Emissions Trading Scheme (EU ETS) is the largest multi-country greenhouse gas emissions trading system in the world. It aims to reduce emissions cost-effectively. The EU ETS covers around 50% of EU emissions and has led to a 13.7% reduction in emissions from 2005-2009. Revisions to the EU ETS starting in 2013 include a stricter cap, increased auctioning of allowances, and benchmarks to determine free allocation. The EU ETS is intended to work with other EU climate and energy policies and serve as a building block for a robust international carbon market through linking with other cap-and-trade systems. Addressing surplus emissions credits is needed to support carbon prices.
Cap-and-Trade in the European Union: Policy and Politics in the EU ETSStefan U. Pauer, PhD
The document discusses the structure and evolution of the European Union Emissions Trading System (EU ETS), the largest cap-and-trade system in the world. It describes the key design elements of the EU ETS including the declining emissions cap, allocation of allowances, and provisions to address carbon leakage. Additionally, it examines the political process around establishing the EU ETS and reforms made to the system over time.
On 15 October 2019, Jonas Teusch (OECD Centre for Tax Policy and Administration) discussed the key findings from the OECD publication, Taxing Energy Use 2019, which presents new and original data on energy and carbon taxes in OECD and G20 countries, and in international aviation and maritime transport.
Global energy consumption rose strongly in 2018 along with energy-related CO2 emissions, reaching a new all-time high. This is disconcerting, as meeting the goals of the Paris Agreement will require deep cuts in emissions. Taxing polluting sources of energy is an effective way to curb emissions that harm the planet and human health. Where do countries stand in deploying energy and carbon taxes to reach environmental and climate goals? How can governments step up efforts?
This document discusses market-based incentives that Sweden has implemented to reduce air pollution from transport, including:
- Differentiated fuel taxes based on environmental characteristics to promote cleaner fuels.
- Differential vehicle taxes based on emission classes to stimulate sales of lower-emitting vehicles.
- An environmental tax on domestic airline emissions to induce changes to more efficient engines.
- A car scrapping charge and premium to increase the ratio of scrapped cars to new cars sold.
The measures have generally been effective in promoting cleaner fuels and vehicles in Sweden.
Public Policy to Mitigate Climate Change: Europe’s Experience with Cap-and-TradeStefan U. Pauer, PhD
Stefan Pauer presented on Europe's experience with cap-and-trade policies to address climate change. He discussed the problem of man-made climate change and potential policy solutions. Europe implemented the largest cap-and-trade system in the world, the EU ETS, which caps total emissions and allows companies to trade allowances. However, the carbon market price has been low in recent years due to oversupply of allowances. Reforms are needed such as tightening the emissions cap, removing excess allowances, or introducing a price floor to strengthen incentives to cut emissions.
Jos Delbeke's presentation at the Climate Action Conference in Brussels, 25-27 October 2010
Topic: An overview of the EU domestic action to combat climate change
The document discusses carbon trading as a mechanism under the Kyoto Protocol to reduce greenhouse gas emissions. It involves capping overall emissions and allowing countries to trade emission permits. Countries with excess permits below their cap can sell to countries that are over their cap. It also describes carbon offsetting programs and case studies of carbon trading in the European Union, highlighting phases that saw both increases and reductions in emissions and carbon prices. Benefits include incentivizing alternative energy development while criticisms note it can slow emissions reductions and lack a centralized global framework.
The threat of climate change requires decisive action across virtually all parts of our economies and societies. Although the world is not currently on track to meet its goal of maintaining the global temperature increase below 2°C, a range of policies have been implemented, with mixed success. Economic theory indicates that a price on CO2 emissions from fossil fuels and other sources is needed if countries are to minimise the overall cost of reducing their emissions. At present, fossil fuels are priced and taxed at levels that differ vastly across fuels, uses, and countries, indicating areas of possible improvements. Likewise, some policy instruments carry a much higher cost of CO2 reduction than others, often a sign of economic inefficiency. The Environment Directorate will present latest results in this area as well as possible new work on the experience with carbon pricing legislation. By Simon Upton, Director, and Nils Axel Braathen, Principal Administrator, Environment Directorate, OECD
This document discusses the challenges of transitioning to alternative energy sources and reducing fossil fuel emissions. It makes three key points:
1) Fossil fuel usage continues to rise significantly despite progress in alternative energy, and alternative energy is not growing fast enough to keep up with increasing energy demand.
2) There are physical limits to how quickly new energy technologies can be deployed at scale. Governments need long-term, stable policy frameworks to encourage changes to energy systems over time.
3) A carbon price policy can drive the implementation of emissions reductions projects over time, while complementary policies are needed to support new technologies like carbon capture and storage through research, demonstration projects, and preparation for deployment. However, additional policies
The document discusses the implementation of a carbon tax in Singapore to reduce greenhouse gas emissions and meet its commitments under the Paris Agreement. It notes that Singapore pledged to reduce emissions intensity by 36% by 2030. The carbon tax will target the largest emitters, applying upstream to power stations and other direct emitters that emit over 25,000 tons of carbon dioxide equivalent annually. The tax is intended to incentivize industries to reduce emissions and complement existing regulatory measures. Revenue will help fund measures to reduce emissions and create new green growth opportunities. The tax is expected to have a modest impact on operating costs for businesses.
- Fuel excise and carbon taxes are effective tools to limit climate change but setting them proves politically challenging.
- Carbon taxes are on average close to zero for most fuels like coal and do not provide meaningful carbon pricing signals.
- Outside of road transport, the vast majority of emissions are untaxed, leaving little incentive to shift to cleaner energy sources.
In this session we will look at some of the policy options for tackling climate change with the long term aim of de-carbonisation
In 2015, the earth’s surface temperature was around 0.9 Celsius degrees warmer than the 20th century average
Many economists recommend applying the polluter pays principle and placing a price on carbon dioxide and other greenhouse gases. This can be implemented either through a carbon tax (known as a price instrument) or a cap-and-trade scheme (a so-called quantity instrument).
La historia del movimiento por los derechos humanos ofrece una historia de resistencia y expansión frente a reveses implacables. El marco de los derechos humanos es universal, supranacional e intrínsecamente emancipador. Además, nuestra comprensión de los derechos humanos se ha ampliado con el tiempo y continuará haciéndolo. La protección internacional de los derechos humanos fue defendida por activistas, diplomáticos y juristas del Sur Global, mientras que los países poderosos se mostraron inicialmente renuentes a apoyarla.
El documento resume el cambio en la interpretación de la retribución de los consejeros ejecutivos tras una reciente sentencia del Tribunal Supremo. Según la sentencia, la retribución de los consejeros ejecutivos está sujeta a los mismos requisitos de reserva estatutaria y aprobación por la junta general que el resto de administradores. Además, la retribución del cargo de consejero ejecutivo requiere la aprobación de un contrato por el consejo de administración. La sentencia también tiene implicaciones fiscal
La sentencia resume un recurso de casación interpuesto contra una sentencia que desestimó un recurso contencioso-administrativo. La sentencia recurrida rechazó las alegaciones de la parte recurrente de que ciertos artículos de la Ley 11/2007 eran inconstitucionales por vulnerar el derecho a la tutela judicial efectiva. La sentencia recurrida justificó esta conclusión argumentando que la notificación electrónica es una opción válida establecida por el legislador, sobre todo para personas jurídicas como la recurrente.
De nuevo sobre la aplicación de un tributo declarado inconstitucional por el ...Guillermo Ruiz Zapatero
Desestimación de recurso de amparo por la STC 128/2017
Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana declarado inconstitucional
Las sanciones tributarias y su revisión por un tribunal superior 2 10-2017Guillermo Ruiz Zapatero
El derecho a la audiencia pública y a la revisión de las sanciones tributarias por un tribunal superior en el Convenio Europeo de Derechos Humanos y en el Pact Internacional de Derechos Civiles y Políticos
El Tribunal Constitucional acuerda admitir a trámite el recurso de amparo presentado por diputados del Grupo Parlamentario Socialista del Parlamento de Cataluña contra dos acuerdos de la Mesa del Parlamento. El Tribunal aprecia la especial trascendencia constitucional del recurso y acuerda la suspensión cautelar de los acuerdos impugnados, dada la urgencia excepcional del caso. El Tribunal recaba también para sí el conocimiento del recurso.
where the purpose of a compensation order was punitive and not compensatory, it might pose an "individuak and excessive burden" on an applicant if he had already been punished for the urderlying offence by a period of imprisonment
The document summarizes a European Court of Human Rights case involving an applicant from Lithuania, Vaidas Dungveckis. Mr. Dungveckis was convicted of fraud and forgery in Lithuanian courts and given a consolidated sentence of imprisonment. He argued he was punished twice for the same offense as he had already served time complying with an injunction. The court documents discuss the proceedings in Lithuanian courts and the applicant's arguments regarding double punishment under the principle of non bis in idem.
La fragmentacion de la deuda tributaria como consecuencia de la liquidación a...Guillermo Ruiz Zapatero
Este documento discute los cambios introducidos por la ley española en relación con la liquidación administrativa de deudas tributarias vinculadas a delitos fiscales. En particular, la ley ahora permite que la administración tributaria liquide por separado los conceptos vinculados y no vinculados al delito, siguiendo diferentes procedimientos, y continúe con el cobro de la deuda aun cuando exista una investigación penal en curso. Sin embargo, el documento argumenta que la ley carece de criterios para distinguir ambos tipos de conceptos, lo que plan
This document is a list of 44 results from a search of a bibliography database conducted on July 8, 2015. All results are writings authored by Guillermo Ruiz Zapatero on topics related to tax law and jurisprudence. The writings include articles published in legal journals such as Revista Quincena Fiscal and Jurisprudencia Tributaria Aranzadi between 2004-2015. The list provides the title of each writing and identifies the publication and year it appeared.
Ruiz zapatero una propuesta de reconsideracion de la retroactividad tributari...Guillermo Ruiz Zapatero
Este documento presenta una propuesta para reconsiderar el concepto de retroactividad tributaria. En primer lugar, analiza el estado de la cuestión en la doctrina administrativa y la jurisprudencia del Tribunal Constitucional español sobre este tema. Luego, propone definir criterios formales para caracterizar la retroactividad, en lugar de reducirla a un caso límite. Finalmente, examina algunos casos tributarios resueltos por el Tribunal Constitucional para ilustrar estas cuestiones.
The document summarizes a European Court of Human Rights case involving a Russian national, Pavel Vladimirovic Rinas, who was subjected to both taxation proceedings and criminal proceedings in Finland related to alleged tax fraud from 1999-2004. The court had to determine whether the ne bis in idem principle was violated, as Rinas received tax surcharges in the taxation proceedings and was also convicted of aggravated tax fraud in the criminal proceedings for some of the same tax years. Both parties agreed the proceedings were criminal in nature for analyzing the ne bis in idem issue. The court ultimately had to decide whether Rinas was tried and punished twice for the same offenses.
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CARBON TAX VERSUS CAP AND TRADE
1. JORNADA DE CO2 Y FISCALIDAD:
Cuestiones Actuales
CEU
Instituto de Disciplinas y Estudios Ambientales
UNIVERSIDAD CARDENAL HERRERA
IMPUESTO SOBRE EL CARBONO Y LIMITACION DE
EMISIONES VS. IMPUESTO SOBRE EL CARBONO O
LIMITACION DE EMISIONES
Guillermo G. Ruiz Zapatero
Valencia December 15, 2009
All opinions expressed here are those of their autors
3. GLOBAL WARMING A TALE OF TWO CULTURES
A tale of two cultures (Nordhaus)
The natural sciences are doing an admirable job of describing the geophysical
aspects of climate change. The science behind global warming is well established.
Designing an effective political and economic strategy to control climate change will
require the second culture the social sciences to analyze how to harness our
systems to achieve our climate goals effectively and at low cost.
The design of policy instruments: quantity-based or price-based constraints
The quantity approach embodied in the Kyoto Protocol (it will be useful to call it the
Kyoto model (European Trading Scheme in Europe)) will not accomplish the goals
of those who would like to slow climate change. As currently designed, it is both
inefficient and ineffective and should be supplemented or replaced (Nordhaus).
4. INCONVENIENT ECONOMIC TRUTHS
Emissions of carbon dioxide are externalities, i.e., social consequences that are not
accounted for in the market place. They are market failures because people do not
pay for the current and future costs of their emissions.
If economics provides a single bottom line for policy, it is that we need to correct this
market failure by ensuring that all people, everywhere, and for the indefinite
future face a market price for the use of carbon that reflects the social costs of
their activities.
Raising the market price of carbon provides strong incentives to reduce carbon
emissions through four mechanisms . First, it provides signals to consumers
about what goods and services produce high carbon emissions and should
therefore be used more sparingly. Second, it provides signals to producers about
which inputs (such as electricity from coal) use more carbon, and which inputs
(such as electricity from wind) use less or none. It thereby induces producers to
move to low-carbon technologies. Third, high carbon prices provide market signals
and financial incentives to inventors and innovators to develop and introduce
low-carbon products and processes which can eventually replace the current
generation of carbon-intensive technologies . Finally, and most subtle of all, the
use of carbon pricing economizes on the information requirements that market
participants need to undertake each of these three tasks. Of course, without a
strong price signal, there is simply no hope for making the vast number of
decisions in a remotely efficient manner.
5. WARMING AS GLOBAL PUBLIC GOOD
Economics leads to a second important truth about climate-change policies. The
analytical basis for an efficient global-warming policy is extremely simple. Because
global warming is a global public good, everyone, everywhere must face the
same price.
The European Trading Scheme (ETS) covers only about half of EU emissions.
The most controversial policy question : the decision whether to rely primarily on
quantity-based or price-based constraints
Relative advantage of a cap-and-trade system (such as is embodied in the Kyoto
model and the ETS), or a carbon tax system (such as is used for limiting gasoline or
cigarette consumption).
System of harmonized domestic taxes on carbon emissions. Conceptually, the
carbon tax is a dynamically efficient Pigouvian tax that balances the marginal social
costs (ANNEX I: Nordhaus) and marginal social benefits of additional emissions.
6. CAP AND TRADE (ETS) SHORTCOMINGS
There is no experience zero with international cap-and-trade systems.
Quantitative limits have proven to produce severe volatility in the market price of
carbon under an emissions-targeting approach. The volatility arises because of the
inelasticity of both supply and demand of permits.
The volatility of CO2 allowances in the EU ETS was large: in the period from October
2008 to February 2009 alone, ETS carbon prices varied between 9 and 24 per ton
of CO2 (also see ANNEX II : Metcalf).
It should be emphasized that the volatility of allowances is not due to policy errors. It
is inherent in this kind of instrument.
International counterproducti ve effect: A higher domestic price of carbon leads to an
increase in the social cost of production beyond the point at which the domestic
cap or ceiling is reached (Gros: Why a cap-and-trade system can be bad for your
health ).Differences in carbon intensities.
Whatever initial target we set is almost sure to prove incorrect for either taxes or
quantities
The cap-and-trade approach is a poor choice of mechanism. It is untested in the
international context; it has been unable to attain anything close to universal
participation; and it has the inherent flaws just described
7. IT IS TIME TO DECIDE ON TAX VS CAP&TRADE
Despite its clear advantages carbon tax has not been the preferred policy
option.Only a few countries, mainly in north europe, apply the tax.
Path dependence could make that option harder at a later stage
To design durable and effective international economic systems is difficult. They are
complex ecosystems, full of hidden prey and predators, with many unforeseen
results. History is littered with failed institutions. You need only look today at the
wreckage of the current financial system.
So, if the Kyoto model (European Trading Scheme) turns out to be another failed
model, it has lots of company.
But it would be better to recognize and change it now, rather than in one or two more
decades of ineffective and inefficient efforts to slow emissions (Nordhaus).
That is the alternative the EU, its member states and citizens are alltogether facing
now and such decision should not be neither avoided nor postponed
8. THE EUROPEAN COMPROMISE BETWEEN CARBON TAX
AND THE ETS (CAP&TRADE)
MAIN FEATURES OF THE PROPOSAL A MENDING DIRECTIVE 2003/96:
Distinction between CO2 related taxation (EUR/kgCO2) and general energy consumption
taxation (EUR/GJ)
Exemption of CO2 related taxation for activities subject to and not excluded from the
Community scheme within the meaning of Directive 2003/87/EC (ETS) (art. 14.1.d))
Exemption of energy products and electricity issued to produce electricity (only from
general energy consumption taxation) (art.14.1.3)
Exemption of fuel for the purposes of navigation within Community waters (art. 14.1.c))
As regards CO2 related taxation, the tax shall not apply to energy products that are
biomass
Only differentiated rates depending on consumption levels could be applied to CO2 related
taxation, provided that they respect the minimum levels (art. 5)
Minimum levels of taxation applicable from 1 January 2013 to motor fuels (articles 7.1 and
7.2 (0,03 /kg CO2) and article 8.2 (0,01 /kg CO2)) and to heatings fuels (0,01 /kg CO2)
Minimum levels of taxation applicable from 1 January 2013 to electricity (nil)
9. THE EUROPEAN COMPROMISE BETWEEN CARBON TAX
AND THE ETS (CAP&TRADE)
MAIN FEATURES OF THE PROPOSAL A MENDING DIRECTIVE 2003/96 (II):
TOTAL O PARTIAL EXEMPTI ONS OR REDUCTIONS IN THE LEVEL OF TAXATION TO
Electricity from the origins specified in article 15.1.b) (solar, wind, wave, tidal or
geothermal;hydraulic origin; biomass, methane from abandoned coalmines;fuel cells)
Energy products and electricity used for Combined Heat and Power generation (articles
15.1 c) and d))
Energy products and electricity used for the carriage of goods and passangers by rail,
metro, tram and trolley bus
Fuel used for navigation on inland waterways
Natural gas in members states in which the share of its in finally consumption was less than
15% in 2000
Energy products and electricity used for non business activities of households and
charitable organizations
10. THE EUROPEAN COMPROMISE BETWEEN CARBON TAX
AND THE ETS (CAP&TRADE)
MAIN FEATURES OF THE PROPOSAL A MENDING DIRECTIVE 2003/96 (III):
Tax reductions (provided minimum levels are respected on average) on products ussed for
heating purposes or for the purposes of article 8 (2)(b) (stationary motors) and (c) (plant
and machinery used in construction) in the following cases:
Energy intensive business (article 17.1.a)
Agreements or tradable permit schemes to achieve environmental protection or
improvements in energy efficiency (article 17.2, 3, 4 and 5). Tradable permit schemes shall
mean other permits than those traded in the ETS.
Until 31 december 2020, Member States shall exempt from CO2 related taxation the use of
energy products for purposes other than those referred in article 7, in a unit subject to
qualifiying expenditure (article 17.a):
The amount of the exemption shall not exceed 70% of the qualifiying expenditure
Qualifiying expenditured shall be capital expenditure leading to a reduction of at least 20%
of CO2 emissions
Proof of the reductions achieved through the capital expenditure
11. ISSUES RAISED BY BUSINESS EUROPE: NO TAXATION OF
INSTALATIONS COVERED BY THE ETS
1. No taxation of installations covered b y the ETS (Article 14.1.d) )
No carbon tax on installations covered by the ETS whether or not allowances are allocated free of
charge
Background
Under the EU ETS, full auctioning of emission allowances will be phased in from 2013.
Installations from sectors deemed to be exposed to a significant risk of carbon leakage will receive
relatively more free al lowances than other sectors. Free allowances will in principle be allocated based on
product-specific benchmarks for each relevant product.
The starting point for the benchmarks is the average of the 10% most efficient installations in a sector.
The benchmarks will be multiplied by historical production to calculate the amount of free allowances to
be allocated and in order to ensure a declining cap, a correction factor will be applied.
For carbon leakage sectors, the free allocation will be multiplied by a factor 1 (100%) while for other
sectors the allocation will be multiplied by a lower figure (0,80 in 2013,and reduced every year to reach
0.30 in 2020). Nevertheless, exposed sectors are not 100% exempt from the auction costs.
Because of the over-all EU CO2 cap, a nd the fact that the benchmarks will be stringent, the ETS is not for
free also for the most efficient installations.
12. ISSUES RAISED BY BUSINESS EUROPE: NO TAXATION OF
INSTALATIONS COVERED BY THE ETS
BUSINESSEUROPE position
There must be no CO2 tax on installations/final energy consumption (electricity) covered by
the ETS (including free allowances): CO2 taxation on EU ETS installations would raise
production costs without generating additional emission reductions. Therefore, installations
and final energy consumption (electricity) already covered by the ETS must be exempted
from the CO2 tax to avoid economic inefficiencies.
A CO2 tax on EU ETS installations that receive free allowances to compensate for carbon
leakage will create the negative effect on competitiveness that free allocation aims to avoid.
Even when receiving (partly) free allocation of allowances, the installations will face a price
on carbon emissions: the cap on emission allowances will decrease by 21% until 2020 and
companies outside a narrow efficiency benchmark will have to partly buy their allowances
already in 2013.
Exemptions from a carbon tax for ETS installations as foreseen for the revision of the
Energy Tax Directive should not be challenged by the State Aid guidelines.
13. ISSUES RAISED BY BUSINESS EUROPE: NO TAXATION OF
OTHER COVERED BY EM
2. No taxation of installations covered by equivalent measures (article 17.1.a) and
b))
Mix of equivalent measures to the carbon tax at the national level to (a) allow small
installations to opt out from ETS and (b) cover emissions from non-ETS sectors
Background
The term equivalent measure is normally used with reference to the ETS Directive
(2009/29/EC, art. 27) which stipulates that small installations can be excluded from the ETS
if they are subject to equivalent measures or measures that will achieve equivalent
contribution to emission reductions . According to point 11 of the pre-amble Such
measures could include taxation, agreements with industry and regulation.
Under the current Energy Tax Directive, Member States may apply tax reductions in favour
of energy intensive businesses and where agreements are concluded with undertakings or
associations of undertakings, or where tradable permit schemes or equivalent
arrangements are implemented, as far as they lead to the achievement of environmental
protection objectives or to improvements in energy efficiency.
14. ISSUES RAISED BY BUSINESS EUROPE: NO TAXATION OF
OTHER COVERED BY EM
BUSINESSEUROPE position
Voluntary agreements between industry and government at national level are the preferred
equivalent measure for European business. To mirror the ETS Directive, such voluntary
agreements should lead to commitments for concerned industries in terms of CO2 reduction
(which implies a monitoring and penalties system).
Where national schemes have been proved to meet challenging energy and emission
targets, e.g. Climate Change Agreements, they should be approved as equivalent
measures.
Companies exempt from the ETS, and subject to other equivalent measures than taxes,
should be exempted from a CO2 tax.
Small installations not covered by the ETS Directive, as they do not reach the thresholds
in Annex I should also be eligible for equivalent measures and exempted from the carbon
tax.
Where national schemes for reducing emissions in the non-ETS sectors are in place,
countries should be allowed to opt out of from the EU CO2 tax framework.
Existing national CO2 tax regimes should be recognised as equivalent for emissions
covered by the Energy Tax Directive framework as long as they respect the ETD provisions.
Some Member States have high energy taxes on environmental grounds. If national
energy tax rates are above the combined EU minimum of energy and carbon taxation,
this should trigger exemption from the carbon tax.
15. ISSUES RAISED BY BUSINESS EUROPE: MIRROR FREE
ALLOCATION IN TAX SYSTEM
3. Mirror free allocation in tax s ystem
How can the free allocation of emission allowances for ETS installations be replicated in
the European framework for carbon taxation?
BUSINESSEUROPE position
To mirror the EU ETS free allocation, they propose the following options:
For small installations from ETS sectors: Exempt sectors on the ETS carbon
leakage list from carbon taxation. Ideally, tax reductions for individual installations
would be in line with the % of free allocation from sectoral or sub-sectoral benchmarks
or other fall back options. Given that allocation of emission allowances to installations
in carbon leakage sectors is not completely free, the reduced CO2 tax might be
computed based on the estimated ETS cost (e.g. % of allowances the ETS
companies will have to buy).
For installations from non-ETS sectors: develop quantitative criteria that allow to
identify which non-ETS sectors are exposed to the risk of relocation under a carbon
tax and exempt them based on the efficiency of the processes.
Implement a transitory period for installations covered by the carbon tax and
not exposed to carbon leakage in line with ETS auctioning rules: a linear increase
with 20% of CO2 tax in 2013, 70% in 2020 and 100% in 2027. Further exemptions
might be needed to prevent distortions of competition in specific situations.
BUSINESSEUROPE believes there is no case for abandoning certain exemptions
such as the existing Energy Tax Directive exemption for mineralogical transformation
to ensure that these sectors remain competitive compared to sectors receiving free
allowances under the ETS.
16. ISSUES RAISED BY BUSINESS EUROPE: MIRROR FREE
ALLOCATION IN TAX SYSTEM
Additional observation: the ETS covers installations, but the Energy Tax Directive (ETD)
makes reference to processes. This could limit the efficient combination of the ETS and the
ETD.
They urge the Commission to consider alternatives to avoid creating excessive compliance
requirements for companies and governments. This issue has been considered in the draft
of the French finance bill: installations of energy intensive industries or industries using
biomass as fuel are exempted from the French carbon tax provided that they will be
subjected to ETS in 2013.
17. ISSUES RAISED BY BUSINESS EUROPE :USE OF OFFSET
MECHANISMS
4. Use of offset mechanisms
How can the use of offset mechanisms for ETS installations be replicated?
Background
Companies can convert international carbon credits from Joint Implementation projects or
through the Clean Development Mechanism into allowances that can be used for
compliance under the EU ETS. Moreover, 50% of EU ETS auctioning revenues should be
earmarked to environmental improvements through incentives for eco-innovation, carbon
capture and storage projects, renewables or reforestation (Art. 10.3 ETS).
BUSINESSEUROPE position
A similar offset mechanism should be envisaged for a carbon tax to ensure cost efficiency
and a level playing field. Therefore, we strongly support to keep Art 17a of the draft
proposal for revision of the ETD which foresees an exemption from CO2- related
taxation for CO2-reducing investments (up to 70% of investment). International offset
could be implemented through widening the scope of this article also to international
emission reduction projects. With regard to respecting the Treaty s freedom of
establishment, article 17a should also allow for offsetting the carbon tax by reducing
emissions in installations in another Member State.
18. ISSUES RAISED BY BUSINESS EUROPE: EXPECTED
ADMINISTRATIVE COSTS
5. Expected administrative costs
On the basis of the current draft for revision of the Energy Tax Directive: what are the
expected administrative costs
BUSINESSEUROPE position
A high level assessment indicates an additional administrative cost of at least 50 M (one-
off to reset the systems) and additional cost of product analyses of some 1,5 M / year if
the reporting fundamentals change from volume and weight to CO2 factors and
GJ . Mitigation of some of these costs is possible if the Commission would provide
Standard conversation factors and reporting system fundamentals would not need to be
changed to cope with "CO2 factors" and "GJ" rather than with volume and weight. These
costs do not include the potential additional compliance and pre-financing burden that
occurs from the fact that the carbon tax is introduced next to the EU ETS. According to the
Commission, the carbon tax will be handled like an excise duty, e.g. collected by the
supplier for the tax authority.
It is unclear how the supplier should make the difference between different sizes of
installations, one inside ETS and one outside when providing the company with
energy. Moreover, in case where the tax would be recovered by energy suppliers,
important changes in current reporting and invoicing systems might be required since the
scope of consumers subject to the taxation might evolve and exemptions / derogation
processes must be entered into existing IT systems.
19. ISSUES RAISED BY BUSINESS EUROPE: EXPECTED
ADMINISTRATIVE COSTS
It is therefore not possible for the Commission to conclude so quickly on the non-
issue of administrative costs and detailed impact assessments should therefore be run to
analyze the question in depth.
Moreover, on the basis of such assessments, appropriate measures should be designed in
order to provide for cost recovery mechanisms or upfront exemptions for fuel and energy
supplies to sectors covered by the EU ETS. A refund mechanism would require such
sectors to pre-finance the carbon tax. This is a cost that most installations are either already
bearing through the EU ETS or should not have to bear to avoid carbon leakage. Such
inefficiencies should be avoided, especially in the current financial climate. Finally, a
transition period would be needed in order to allow companies sufficient time to implement
the new modalities.
20. PROVISIONAL CONCLUSIONS (I)
PRICES ( CARBON TA XES) OR QUANTITIES (CAPS) BUT NOT BOTH
CARBON TAX SEEMS A BETTER POLICY TO REDUCE CARBON EMISSIONS
THROUGH SIGNALS TO CONSUMERS, PRODUCERS AND INNOVATORS AND
TO ECONOMIZE ON THE INFORMATION REQUIREMENTS THAT MARKET
PARTICIPAN TS NEED (Nordhaus)
COORDINATION OF CARBON TAX AND ETS IS A COMPLEX, DIFFICULT AND
COSTLY TASK
COORDINATION OF CARBON TAX AND ETS SENSIBLY PROPOSED BY
BUSINESSEUROPE WOULD LEAVE A RESIDUAL CO2 TAXATION -COMPARED
WITH THE INITIAL TAXABLE BASE- AND HIGH AD MINISTRATIVE COS TS
UNILATERAL CAP & TRADE (ETS) WITH HIGHER DOMESTIC CARBON PRICE
LEADS TO AN INCREASE IN THE SOCIAL COST OF PRODUCTION BEYOND
THE POINT AT WHICH THE DOMES TIC CAP IS REACHE D (Gros)
A CARBON PRICE WOULD NEED BORDER TAX ADJUSTMENTS. THE BTA
GIVES THE OTHER C OUNTRIES INCENTIVE TO ADOPT A CARBON POLIC Y
21. PROVISIONAL CONCLUSIONS (II)
A CARBON TA X COULD BE BETTER ADJUSTE D THROUGH TIME (Nordhaus)
A CARBON TAX WOULD ALSO NEED TO ADDRESS THE PHASING OUT OF
FOSSIL-FUEL SUBSIDIES: SUBSIDISED PRICES ARE ALSO PART OF THE
PROBLEM
A CARBON TA X SHOULD BE USED TO FINANCE TAX REDUCTIONS IN INCOME
TAX (A GREEN E MPLOYMENT TAX SWAP?; Metcalf))
22. ANNEX I
Figure 1. Central case and uncertainty bands for social cost of carbon
The figure shows the central case and the current uncertainty bands for the social cost of carbon (SCC) at different
dates in the future. The square and circle in the center of the bars are respectively the certainty equivalent for the
SCC and the mean SCC for the 100 runs in a Monte Carlo uncertainty analysis. This is for the base no-controls
case for the DICE-2007 model. (Source: William Nordhaus, DICE model.)
23. ANNEX II
Figure 2. Volatility of Prices under a Cap-and-Trade Regime
This figure shows the history of two contracts under the EU Emissions Trading Scheme. The volatility is
representative of trading prices for allowances under cap-and-trade systems. (Source: Gilbert Metcalf, A
Proposal for a U.S. Carbon Tax Swap, Hamilton Project.)
24. ANNEX III: Policies to Cut Emissions
I. Traditional regulations
II. Direct subsidies for certain technologies
III. Economic incentives (price per ton CO2 )
A. Cap-and-trade permit system
B. Carbon tax
25. ANNEX IV: Comparing a Tax vs. Cap-and-Trade
Source: Prof. Don Fullerton: Choice of Climate Policy in the EU
OR: a vertical supply curve
(a fixed number of permits)
Price
(in per ton)
A tax, per unit of pollution,
imposes a price, like a flat
supply curve
Demand ( willing to pay
for the right to pollute)
Quantity (millions of tons)
26. ANNEX V: Comparing a Tax vs. Cap- &-Trade
A carbon tax can be equivalent to a cap and trade permit system, IF:
If government sells the permits at auction (so that the revenue is the same)
And if policymakers know exactly where is the demand curve ( certainty )
27. ANNEX VI: Comparing: What if demand is not known for sure?
Source: Prof. Don Fullerton: Choice of Climate Policy in the EU
A fixed quantity of permits, leads to
uncertain price, and costs for firms
Price
A tax, leads to uncertain
amount of pollution
Quantity of pollution
28. ANNEX VII: Comparing a Tax vs. Cap-and-Trade
Source: Prof. Don Fullerton: Choice of Climate Policy in the EU
Normally firms are prohibited
from colluding to restrict output
and raise price. With permits,
Price they are required to restrict
output (and raise price)
Fixed pollution per unit output
(tons carbon per Kwh). The
demand for electricity is a
demand for pollution
MC + carbon tax
Marginal Cost
Restricted number of permits Demand
Quantity of coal-fired electricity
29. ANNEX VIII: Relative Carbon Intensities. Source: Gros
Countries carbon intensities
CO2 intensity of CO2 intensity of
exports GDP 2005
EU27 0.47 0.43
USA 0.72 0.53
China 2.46 2.43
India 2.67 1.78
Brazil 1.05 0.5
Russia 3.85 4.4
30. ANNEX IX: Effect of ETS with higher carbon intensity abroad.
Source:Gros
31. ANNEX X: Bibliography
Businesseurope: Contribution to the revision of the Energy Tax Directive . Position
Paper. November 5, 2009
Fullerton, D.: Choice of Climate Policy in the EU . November 30, 2009
Gros, D.: Why a cap-and-trade system can be bad for your health . VoxEU,
December 5, 2009
Gros, D.: Why the EU needs a border tax on carbon .VoxEU, December 9, 2009
Hansen, J.: Cap and Fade .New York Times, December 6,2009.
http://www.nyti mes.com/2009/12/07/opi nion/07hansen.html?_r=1
Komanoff & Rosenblum: Carbon Taxes First . www.carbontax.org
Nordhaus, W.: Economic Issues in Designing a Global Agreement on Global
Warming . Copenhagen March 10-12,2009
Melillo,J.M.: Terrestrial Ecosystem Model
http://ecosystems.mbl.edu/staff/melillo.html;
http://ecosystems.mbl.edu/TEM/index.html
Ruiz Zapatero, G.¨: Los biocarburantes y el Impuesto sobre Hidrocarburos a la luz
de las últimas propuestas de la Comisión Europea .Cuadernos de Energía nº 20,
Abril 2008,páginas 93-106.
http://www.deloitte.com/view/es_ES/es/industrias/energia/cuadernos-de-
energia/index.htm