Carbon Pricing to promote Public Goods

Carbon Pricing for Public GoodsGeneva, January 25. By Adam Koniuszewski, GCSP Fellow

The Cost of Carbon Pollution

The enormous economic, social and environmental costs of climate change have been widely recognized since Nicholas Stern worked on quantifying them a decade ago. These costs however remain largely unaccounted for in the marketplace. This failure to apply the polluter pays principle distorts prices, encourages carbon pollution, and gives fossil fuels a competitive price advantage over cleaner alternatives.

Pricing Carbon

A number of nations, including Scandinavian countries, Switzerland and Italy, are trying to correct market signals by pricing carbon. In 2016, carbon pricing covered 13% of global emissions; a number that is expected to reach 50% of emissions by 2030. Carbon pricing, in the form of a tax or carbon trading, generated $50 billion in government revenues in 2015.

A “Framework Convention for Carbon Control” 

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The author suggests that carbon pricing experiences have produced valuable lessons for more governments to adopt it. In fact, there is now a compelling case for creating a “Framework Convention on Carbon Control” (FCCC) and an independent agency to oversee all aspects of carbon emissions and sequestration. Inspired by the successes of the “Framework Convention for Tobacco Control” (FCTC) in alleviating the smoking epidemic, the carbon control convention would be designed to fix market failures and insufficiencies that create de facto subsidies for carbon pollution.

The author also suggests that by ending fossil subsidies and implementing carbon pricing, nations can generate a revenue base that could be used to reduce corporate and personal income taxes. In addition to supporting national priorities like health and education, carbon finance can also fund the universal goals represented by 2030 sustainable development agenda.

For more see:  Winning the Tax Wars – Tax Competition and Cooperation 

Published by Wolters Kluwer, Jan 2018 (see chapter 9)

About “Winning the Tax Wars”

Tax Wars Book FlyerThe book is the outcome of the 2016 TaxCOOP conference at the World Bank in Washington DC on the impacts / solutions to international tax competition. It covers transfer pricing / profit allocation between tax jurisdictions, the need for compliance, investigations and protecting whistleblowers, wealth taxation in an increasingly unequal world, derivatives and hedge-funds, tax investigations, electronic commerce and crypto-currencies, and sin taxes. Its authors, editors and experts include: Brigitte Alepin, Blanca Moreno-Dodson, Louise Otis, Allison Christians, Vanessa Houlder, Lyne Latulippe, Patricio V. Marquez, Richard Murphy, Erika Siu, Eric M. Zolt and Adam Koniuszewski.

About TaxCOOP

TaxCOOP is an international independent and nonpartisan conference on tax competition and the weaknesses of the current tax system in the era of globalisation. Thanks to its various initiatives, TaxCOOP is now recognised as one of the most influential tax initiatives globally.

 

Winning the Tax Wars

I authored the chapter on Carbon Pricing in this new and most timely book on global tax competition: Winning the Tax Wars:

Tax Wars Book Flyer

Tax Wars Book  Flyer2.jpg

The book, resulting from a TaxCOOP Conference at the World Bank in Washington DC in 2016, covers how tax competition has evolved and its impact on developed and developing countries, the state of play when it comes to multinationals and transfer pricing / profit allocation between tax jurisdictions, the need for compliance, investigations and protecting whistleblowers, the need for a wealth tax in an increasingly unequal world, and, tobacco taxation.

A full chapter is devoted to promoting public goods and addressing climate change through carbon pricing along with recommendations to solve the growing crisis of tax competition represents my contribution to this important and authoritative work.

For more about Taxing Wealth by Richard Murphy check here.

The last TaxCOOP Conference took place at the United Nations Office at Geneva on October 16, 2017.

 

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Thanks to such initiatives, TaxCOOP has become the only conference in the  top 50 most influential on the global tax scene.

TaxCOOP Top50

More on this soon.

 

 

Land and Security: Focus on Migration

CDLS_Plenary_1_2016-31With over 1 million migrants and refugees arriving in Europe, 2015 saw the highest migration flow since World War II according to the International Organisation for Migration (IOM). The degradation of 25% of the most productive lands is forcing farmers and pastoralists to move in search of fertile soil and pasture. These population movements are causing tensions between communities, further degradation of lands and are resulting in conflicts.

The fifth edition of the Caux Dialogue on “Land and Security” thus focused on the potential for land restoration to mitigate migration flows.

A planetary emergency

In his opening keynote, former Secretary-General of the Club of Rome and Gorbachev Climate Change Task Force member Martin Lees, warned that: “failure to take urgent and aggressive on climate change represents a clear and present danger for humanity. The difference of a few degrees can mean our survival as a species”, he added.

With a quarter of human-emissions coming from agriculture, forestry and other land use, the potential for emission reduction and sequestration is enormous. Interestingly, in the US, this is leading to bi-partisan efforts into exploring how to maximize this potential despite political polarization in other areas. Can cooperation over land restoration become a catalyst for bi-partisan climate action?

Land degradation and conflict

As Europe struggles with an unprecedented migration crisis, Grammenos Mastrojeni from the Italian Ministry of Foreign Affairs and International Cooperation warns that: “Europe wants to solve the problems in the Middle-East and Africa, not as a problem for the Middle-East and Africa but as a problem for Europe. That will simply not work”.

The Syrian crisis

A better understanding of what ignited the migration flows is a good place to start.

The Syrian example provides an excellent business case for analysts and geo-political experts. “The policy of promoting water intensive crops like cotton in a dry climate when you are suffering the worst drought in 900 years is a poor strategy” said Adam Koniuszewski from Green Cross. Water over extraction dried up the wells, widespread crop failures ensued and people from rural areas massively moved to the cities as a matter of survival.

For Dina Ionesco who is heading the Migration, Environment and Climate Change section at IOM, the problem is hence not voluntary migration but the forced displacement of people. This is what needs to be addressed and certainly something she understands given her family’s experience fleeing Romania as political refugees to France to escape the oppression of the Ceaușescu regime.

CDLS_Plenary_1_2016-3

It takes 2,700 liters of water to make a single T-Shirt! Said Adam Koniuszewski

Forced displacement in Africa and elsewhere is often caused by land grabs. Andrea Staeritz, lawyer at Land Justice 4 West Africa, argues that the inability to enforce land ownership rights results in thousands of people being evicted from their lands and deprived of their livelihoods. Sometimes this results from European companies for palm oil plantations, for infrastructure projects or for reforestation projects that will end up in company CSR reports…

Growing action for restoring degraded lands

Thanks to forums like the Caux Dialogue on Land and Security, political concern and attention is growing for restoring degraded lands and halting desertification. Recent initiatives to promote constructive policymaking in this area include:

  • Future Policy Award to Combat Desertification by the World Future Council in cooperation with the UNCCD
  • Carbon Sequestration and Soil Conference to be held in Paris (Spring of 2017) with the participation of representatives from The World Bank, Organic Consumers Association, Center for Food Safety, Oxford University, Carbon Cycle Institute, Marin Carbon Project, The Nature Conservancy, Land Trust Alliance, Johns Hopkins Center for a Livable Future, IIAS-Potsdam, Carbon Underground, soil4climate, Healthy Soils Australia, the U.S. Department of Agriculture with the objective of raising the sense of urgency and working to build momentum for carbon sequestration in soils (contact Betsy Taylor)

Around the world momentum is building for soil restoration. The Caux Dialogues and its partners deserve praise for providing an early platform to raise awareness about land degradation and for becoming an extraordinary catalyst for land restoration action and the scaling-up of solutions.

Book launch session: Reclaiming Landscapes for a Sustainable Future, by Martin Frick , Jennifer Helgeson and Ilan Chabay.

61YsZZ-KcGL._SX403_BO1,204,203,200_Many of the experts and practitioners that have contributed to the Caux Dialogues over the years have shared their wisdom and vision in “Reclaiming Landscapes for a Sustainable Future”, a book on land restoration by Martin Frick and Jennifer Helgesson. I am honoured for having been able to contribute a chapter on the impacts of military activities on soil and about promising remediation possibilities. The 600 page book can be ordered directly from the publisher Elsevier.

Montreal, Cycling to Prosperity!

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24,000 Montrealers bike to work every day. In North America, only New York, with a population four times greater, has more daily commuters (36,000) according to the latest report of Vélo Quebec.

Montreal, cycling capital of North America

One reason for this success is that over 30 years ago Montreal started investing in segregated bike lanes to make cycling safe and enjoyable. In downtown, 4% of all commutes are by bike. In Plateau Mont-Royal 10.8%! a level comparable with Vienna, Stockholm and Berlin.

A great potential

With every third Montrealer living within 5km from work, a study by the mobility school of Ecole Polytechnique assessed that 22% of all car trips in the city could easily be biked. A huge potential for more cyclists in the Metropole.

Investing $150 million for cyclists!

As part of its sustainable mobility strategy, Montreal is thus planning additional investment that could reach $150 million (with $15 million this year) to grow its already impressive bike lane network from 730km to 1,280km – to the joy of cyclists and the rage of some drivers… But is it worth it?

A wise investment

A recent Lund University (Sweden) study of cycling in Copenhagen concluded that cars impose costs on society from air pollution, climate change, noise, road wear, health and congestion. In economic terms this represents a negatively impact from cars of EUR 0.50 per kilometer vs. only EUR 0.08 for bikes…

When the impact for society as a whole is considered, every kilometer driven costs the community EUR 0.15. Meanwhile, society benefits EUR 0.16 per kilometer cycled! 

Conclusion: Bike for prosperity!

Related links: 

Tour de l’ile de Montreal

Montreal Go for it by night Festival

Montreal biking investments 2016-17

Velo Quebec Report on Biking in Montreal 2015

Road safety: rage agains cyclists

Congrats Montreal! Host of the 2018 ICLEI World Congress!

mtl_vert_375ICLEI, the largest association of local governments for sustainability, just announced that Montréal will host their next world congress in 2018.

With over 54% of the world population already living in cities (UN 2014), including 82% in North America, and other regions including Africa urbanizing rapidly, two-thirds will live in cities by 2050.

Cities are also where 75% of all carbon emissions are generated. Faced with a growing world population and continued migration to urban areas, cities and local governments are the key actors that can drive the course for “globalizing urban sustainability”.

Montreal and sustainability

Montreal was selected for its leadership in driving sustainability policy and commitment to scale-up its initiatives, including planting over 300,000 trees and new sustainable mobility solutions such as bicycle paths, public bike sharing and the electrification of transportation.

Leading congress location in the Americas

Palais_des_congrès

With its famous “Palais des Congrès” located in the heart of its lively downtown, meters away from the historic old town and the arts and entertainment district, Montreal ranks  as the premier location in the Americas for large-scale international events and also reflects Montreal’s commitment to sustainabilty. The “greening” of the PCM’s 13,416 m2 (144,386 sq. ft.) roof that is currently in development is a practical example of climate action to   reduce the urban heat island effect.

Capital of the “Vivre Ensemble”

Montreal is the city that welcomed us when my family immigrated to Canada in the early 1970s. Today still, Montreal is one of the most multi-ethnic and multicultural cities in the world – a capital of the “Vivre Ensemble” (Living Together) and a vibrant platform for culture, education and innovation.

Congratulations to Montreal for this brilliant success!

Related links:

ICLEI

Palais des Congrès

Montreal International 

NATO, Justin Trudeau and responsible citizenship

Trudeau_36The heads of state and heads of government of the 28 North Atlantic Treaty Organization countries gathered in Poland last Friday and Saturday (July 8-9) for what many consider the most important NATO meeting since the end of the cold war. Hence, many were surprised to see Canada’s superstar Prime Minister Justin Trudeau arriving with his 9 year old son Xavier.

Early immersion in global affairs

But Justin also got an early introduction to the world of diplomacy and global affairs. Imagine the shock 40 years ago when the late Pierre Elliott Trudeau showed up with eight year-old Justin to meet the Iron Lady, British Prime Minister Margaret Thatcher.

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Surely, his father had a profound impact on him and his influence got him to become Prime Minister.

“All my life I had wanted more than anything to become a dad. I was inspired by the extraordinary father I’d had, the example he set for me to follow.”

A man of integrity and conviction, Pierre Trudeau cherished the importance of universal  human rights, responsible citizenship, care for the environment and Canada’s role in the world. These are the focus of the Pierre Elliott Trudeau Foundation, an independent and non-partisan charity established in memory of the Late Right Honourable Pierre Elliott Trudeau. These priorities also come out as important for Justin Trudeau and we can  foresee that Xavier will someday work towards them as well.

Education about global issues

Not everyone can have a Prime Minister as a parent but all young people should have access to education about global issues. Education is the critical first step to transform individuals into engaged citizens and actors of change in their communities.

The “Education is a Window to the World” program run by The Bridge Foundation engages opinion leaders and youth on sustainable development and global issues.

Was air pollution a factor when Portugal beat Poland?

poland-vs-portugal-live-streaming

A research team at the IZA Economic Institute in Bonn (Germany) found that air pollution significantly impacts the performance of football players, even when measured pollution is below what the EU considers “safe level” thresholds. Above those concentrations, the measured decline in performance reached as much as 16%!

The World Health Organization reported that outdoor air pollution in cities for fine particles (called PM2.5 being smaller then 2.5 microns including dust, exhausts and coal combustion) was almost three times higher in Poland than in Portugal (28.7 vs. 10.8 ug/m3). Health effects include asthma and respiratory diseases such as lung cancer – children, the elderly and those with lung or heart disease are most at risk.

Outdoor air pollution causes 3.7 million premature deaths around the world according to Dr. Maria Neira, WHO Director for public health, environmental and social determinants of health.

In December 2015, the European Commission referred Poland to the EU Court of Justice for persistently high and dangerous levels of air pollution – mostly coming from household heating and road traffic. The Commission deemed that measures taken by the authorities were inadequate.

While we cannot attribute the victory of Portugal to pollution, it is clear that poor air quality affects more then just the quality of football games. Urgent action is needed!