Taxing all Greenhouse Gases, re-distributing 50% as cash-back to people and 50% invested in renewables could lead to rapid de-carbonisation
Submitted by SolAbility
October 5, 2023 /CSRwire/ - The potential negative impacts of global warming have been known for ages. The heat-absorbing characteristics of CO2 in the atmosphere was first experimentally proven in 1856; the first calculations of how our climate could be affected by continued burning of coal/oil and gas were published in 1907. Famous and respected scientists have warned the World since the 1970s again and again of what is to come. 2023 has seen temperature and climate anomalies on all levels – heat waves, droughts, interrupted by torrential rain and floodings of biblical proportions, all around the globe. Net-Zero by 2050, the stated target of the Paris Agreement that was supposed to keep our planet below 1.5 C warming, is already out-dated – September 2023 locked in at 1.8 C warming. It is only a question of time before harvest of staple foods will be seriously affected.
Yet – on the policy level all there is are “calls”, “pledges”, and “targets” that should be achieved somehow sometime in the future.
There is still no plan, no roadmap, no concept for financing.
Global warming/climate change is a market failure - the true cost of the product is not included in the price. Changing climate change therefore seems best tackled through market instruments: taxes on CO2 and all other GHGs. The problem with this approach is that energy intensive products/services will become less affordable for the lower income segments: there needs to be some kind of a compensation: a cash-back.
The study, conducted by SolAbility, examines the impacts on energy usage, technology deployment, carbon emissions, and on the economy through a computed simulation under a scheme that would tax CO2 and GHGs, redistribute 50% of the tax revenues in cash to the people, and re-invest the other 50% in building a renewable energy infrastructure - Global Climate Tax'n'Cash
The global climate tax revenues are used as follows:
The simulation of a global climate tax shows that
We already have the technology needed for an energy transition. The new technologies are more efficient, and cheaper. Unfortunately, there is no political vision and courage to start financing the transition. For reasons that are somewhat difficult to comprehend, a global climate tax seems as politically illusionary as it is economically viable.
For more information, please visit www.climatax.org
SolAbility is a sustainable management consultancy and sustainability think-tank. SolAbility is the maker of 3 DJSI Suspersector Leaders, and proud publisher of the Global Sustainable Competitiveness Index.
SolAbility has presence in Korea and Switzerland.
More from SolAbility