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.

 

TaxCOOP2017-Carte souvernir[11][2]

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.

 

 

Montreal, Cycling to Prosperity!

festival-go-velo-montreal-tour-de-lile1

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 

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!

Happy Canada day to all!

Flag_of_Canada149 years ago on this day, the people of Upper Canada and Lower Canada came together to create one great nation, Canada.

“From the outset, Canada was formed not in spite of differences, but because of them. Thanks to the hard work and understanding between many cultural and religious communities, Canada is the diverse, inclusive, and compassionate country that we are fortunate to call home today”, said Canadian Prime Minister Justin Trudeau this morning.

Those words were echoed this morning by Canadian Ambassador to Switzerland Jennifer MacIntyre in her talk to the members of the Canadian-Swiss Chamber of Commerce when she said that “Canada is strong precisely because of the diversity of its people. This is not only a source of pride but the reason of our prosperity and success as a nation.”

I can certainly relate to this message. My family escaped the tyranny of the communist regime in Poland in the early 1970’s and we received a wonderful welcome in Montreal (Quebec). That is where I grew up and where my parents and brother still live and celebrate the “vivre ensemble” (Living together).

Four decades later, Canada still is a beacon of hope for refugees escaping the atrocities of the middle-east crisis. The Trudeau administration committed to take in 25,000 Syrians only to increase this number by tens of thousands soon after.

So many Canadians are willing to sponsor them that the government can’t bring them quickly enough. “Where are the refugees that you promised us? When will they arrive? We are waiting for them! is what I hear from the constituents in my Toronto riding” said Minister of International Trade Chrystia Freeland during the Forum of the Americas in Montreal two weeks ago.

And this constructive and solutions-oriented approach extends well beyond the refugee crisis. When the Canadian delegation arrived at the Paris Climate Conference in December, the assembly was chanting: Welcome back Canada! Welcome back Canada! and that was even before the climate minister Catherine McKenna voiced Canada’s commitment to maintaining climate change well-below 2 degrees.

At a time when the dark forces are shaking the world by promoting hate, fear and isolationism, there is a new wind blowing from Canada. One that is supported and celebrated by all Canadians. It is a message of peace and tolerance, a celebration of multiculturalism and diversity and a reason for the whole world to celebrate!

Happy birthday Canada!

Related Links: 

The promise of diversity

COP21 – Paris Climate Conference

For a Carbon Tax by Stephane Dion

Powering Forward, by Bill Ritter, JR.

PoweringForwardAs “Powering Forward: What Every American Should Know about the Energy Revolution” becomes available for sale today, I am grateful to Bill Ritter, his team at the “Center for the New Energy Economy” (CNEE) at Colorado State University and to Fulcrum Books for providing a copy of the book for this review.

Bill Ritter Jr. knows a thing or two about the energy revolution and the sun that is setting on the fossil fuel industry. As Governor of Colorado, he turned the State into a leader in clean energy and then launched the “Center for the New Energy Economy” (CNEE) to help other states accelerate their transition to a clean-energy future.

Having hosted Gov. Ritter at the Geneva “Green and Inclusive Economy” Conference ahead of the Paris climate summit, I was familiar with his work as governor and at the CNEE including the need to address climate change, the cost of clean versus fossil energy and green jobs. All are well covered, as one would expect in such a book. But “Powering Forward” is different in that it goes much further to address the role of science and education, the need for well informed citizens for a functioning democracy and how biased and misleading media coverage has helped the climate denial industry. But his most important contribution is to shed some light on the government intervention versus the free-market myth and his attempt to turn a divisive energy debate into a consensual and bi-partisan quest for a better future.

The Myth of the Invisible Hand

For many, government intervention amounts to “corporate welfare” and invariably drives up costs for consumers. It may therefore come as a surprise that fossil fuels have been subsidized since 1916 and that American energy utilities have been run as quasi monopolies with no competition. While most will agree that governments should not pick winners or losers, thinking that energy markets are “free” is a misinformed illusion. The reality is that government still largely favours fossil fuels with obsolete policies from the carbon age that are slowing down innovation, artificially restricting consumer choice and undermining American energy security.

The Tea Party Turns Green in Georgia

A good example comes from Georgia where the Sierra Club and the local Tea Party took on the monopolistic energy structure. It did not sit well with them that people could not choose where they get their electricity from and they forced a change in law to allow customers the ability to generate their own electricity and sell it back to the grid.

Consensual and Bi-Partisan

Business as usual is no longer an option. We are at the crossroad and must now decide if we will become the victims of our future or its architects. By working together and reconciling our differences we can turn scarcity into abundance and crisis into opportunity. This is the key contribution of Powering Forward.

Powering Forward Energy Facts: 

– Scientists understood the link between CO2 and the greenhouse effect in the late 1800s

– Lyndon Johnson is the first US president to raise the climate alert in 1965

– In 2006, Colorado College warned there would be no more skiing in the state by 2050

– On windy days 60% of the electricity in Colorado comes from wind

– At $25 per megawatt hour, wind power is over 20% cheaper then natural gas

Centralized power wastes up to 2/3 of the primary energy put into the system

Americans prefer energy conservation to energy production

– 87% of Americans think the US government should act about climate change

– The US Department of Defense sees climate change as a threat multiplier

– The IMF estimates fossil fuel subsidies at nearly $2 trillion including external costs. Most of the income is received by the wealthiest according to the IEA

US fossil subsidies amount to $2,180 for each man, woman and child annually

– The true cost of coal-fired power amounts to some $0.27/kWh

6 of the top 10 solar manufacturers are Chinese

9 of the top 10 wind manufacturers are non-US

Warren Buffet is buying solar power for $0.038/kWh (the avg. price paid by US households is close to $0.12/kWh)

– Arizona’s energy utility installs free solar panels and pays its customers $30/ month for 20 years to feed power into the grid

Solutions COP21: Business and climate change

Of the largest 150 economic entities in the world 59% are not countries but corporations.  And when it comes to climate change, the private sector is largely responsible for the problem but also suffers its consequences – most importantly, business can play a central role in addressing the climate crisis by rapidly scaling up solutions for both mitigation and adaptation.

Solutions COP21

COP21_GrandPalais_NuitInnovation_4Dec15Over the last 18 months, “Solutions COP21”, led by the Comité 21, the Club France Développement Durable, Hopscotch Groupe and Alliantis communications, developed a platform to showcase business solutions to the public with existing products, services, processes and innovations (and more on the way) to fight climate change and its impacts.

During the COP, the Grand Palais in Paris became the showroom for leading corporations, entrepreneurs and local authorities to put on display their solutions. It also became a center for discussion and exchange on the role of private enterprise can play and how collaboration with other sectors can be improved.

Climate policy and enterprise risk management

IMG_20151204_155056That global warming is real and having serious impacts is no longer debated. Increasingly,  responding to this reality is becoming part public policy according to Anne Ged, Director General of the Agence Parisienne du Climat, adding that Paris has been working on its adaptation strategy since 2012. It is also increasingly part of the risk management processes at all levels. The French ministry of sustainable development assessed that a one-meter sea level rise would flood over 15,000 km of local roads across the Republic. Similarly in the private sector, Stefano Bonelli, senior consultant at the Environmental Resources Management consultancy (ERM), says that climate related risk management for corporations is one of their fastest growing business segments.

The urgent realities of climate change

For SNCF’s Director of sustainable Development, Christian Dubost, climate change  is already impacting its activities with extreme temperatures during heat waves deforming rails and igniting bushfires that result in delays and extra costs. He warns that by 2050, the  2003 heatwave will be the norm – a reality the SNCF is already preparing for now. Facing this future requires a better understanding of the challenges and improved cooperation between sectors. This is part of EPE’s (Entreprise pour L’Environnement) mandate, explains its Delegate General, Claire Tutenuit. We need platforms to share knowledge, experience and foster cross-sector cooperation, she adds. Such partnerships have allowed Veolia to recycle up to 98% of the water for industries in Durban, South Africa, benefiting industry and the environment explained Hélène Lebedeff, Director of Sustainable Development.

Partnering with nature

Leveraging ecosystem services by working collaboratively with nature can provide important co-benefits according to Philippe Thiévent, Director of CDC Biodiversité, explaining that we are only beginning to discover the value of wetlands as hotspots of biodiversity and their benefits in terms of water filtration, aquifer recharge and exceptional flood mitigation capacity. Harnessing such co-benefits can play an important role in mitigation and adaptation strategies and be very interesting from a social, environmental  but also from a business perspective.

Clearly an important consideration for business to become a force for good when it comes to climate action.

This article is based on the conference “Comment les entreprises s’adaptent aux dérèglements climatiques” organized on December 4, 2015, as part of SolutionsCOP21 at Le Grand Palais, Paris – Espace de conférence, by EPE (Entreprise pour L’Environnement). http://www.epe-asso.org

Participants: Agence Parisienne du Climat, Anne Ged, directrice générale, CDC Biodiversité, Philippe Thiévent, Directeur de CDC Biodiversité, ERM, Stefano Bonelli, consultant senior, Green Cross International, Adam Koniuszewski, Executive Director, SNCF, Christian Dubost, Directeur de l’environnement et du développement durable, Veolia, Hélène Lebedeff, Directrice adjointe du développement durable. The event was moderated by Claire Tutenuit, Entreprise pour l’Environnement. 

COP21 – The birth of humanity

IMG_0188Here are some thoughts from Jean-Louis Servan-Schreiber, journalist, writer and Vice Chairperson of the Human Rights Watch board, on the historical climate agreement announced on December 12 at Le Bourget in Paris. I was honored to join Jean-Louis and Corinne Lepage to speak at the Conference on Youth (COY) that preceded the climate talks to present the Declaration of Rights of Humankind and its importance to youth and future generations. FRENCH VERSION

COP21 – The birth of humanity

The memory of the media will keep this joyful scene at Le Bourget when the announcement of the agreement at the COP21 was made. Since then, objections, criticism and analysis of its shortcomings abound. They were inevitable and many are warranted.

But the most important when it comes to the future of humanity could not be rational. The collective emotion, even fleeting, gave the world images of what has inspired us to come together. In this digital era, we will see these images again and again, so as no to forget that what unites us is ultimately more powerful then what divides us.

To meet this challenge, a snap of fingers will not be sufficient. It will take decades of effort by activists, governments, scientists, associations, artists and others. But most of all, it will be for each new generation to discover the world in which it lives.

This moment of unanimity gave existence to humanity, beyond nations, beliefs or interests. We felt for a few minutes how this little flame, nascent, fragile, still wavering, was for us and our children so infinitely precious.

The emotion of this final between negotiators exhausted and radiant is already listed heritage. 

Jean-Louis Servan-Schreiber

 

 

Smartphones explode power bills!

I was intrigued yesterday morning when I heard the Virgin Radio (France) host saying that mobile owners pay €70 a month to power their smartphones, ipods, tablets and laptops. It turns out this number relates to the annual cost but the point is no less alarming. The average household spends around €1,400/year on energy of which some €900 relate to electricity. According to the French Environment and Energy Management Agency (ADEME), 14% of this electricity relates to recharging phones and other devices – a very high figure which exceeds even the share of lighting that comes to 12%.

Smartphone

The agency warns that most of this power is wasted when the phone is left to charge overnight, even when it is turned off. The residual power that is wasted when devices are plugged in represents a pure waste equivalent to two nuclear power plants operating permanently at full capacity and a cost of €2 billion.

Imagine what could be achieved if such funds were invested into speeding the transition to a clean energy future.

Some smart ideas:

  • Most phones can be charged in two hours – leaving them to charge overnight is costly and wasteful.
  • Get an external battery to provide more autonomy when needed.
  • Go for a solar or wind powered charger!
  • Charge your phone as you ride – Check out CITYCYCLE.COM at LINK for great Christmas ideas for your favorite cyclist!soporte-finn-de-bike-city-guide1

COP21: more than expected, short of what’s needed

After over 20 years of climate talks, 195 countries reached a “universal, fair, dynamic and binding agreement” to “save the planet” by keeping global average temperature rise well below 2 degrees. The mood was euphoric and some delegates were in tears after the three sleepless nights that concluded ParisClimat2015. Having followed the preparations of this global forum, I was impressed by the efforts of the city of Paris, the French authorities and particularly by the personal engagement of the French President for an ambitious and historic outcome.

1.5 degrees target

IMG_0271

1.5 degrees target

I am proud that Canada, after a decade of obstruction and denial under the Harper administration, has come out in favor of a 1.5 degree objective under the leadership of newly-elected Justin Trudeau. Staying “well below 2 degrees” is now the stated target of the world community and Canada is back as a constructive force on the world scene. This leadership will be needed to if we are to turn this lofty objective into something meaningful in terms of climate action.

“Aspirational” Objective

The 1.5 degree goal reflects calls of small island states, climate scientists and civil society but the new ambitions do not yet translate into commensurate actions that would even have a remote chance of meeting the original so-called “safe” target of 2 degrees, let alone 1.5 – which would require much faster reductions in green-house-gases and methods of taking back some of the carbon that has already been emitted.

Growing science and reality gap 

Scientists have been warning that there is a time lag between the moment when carbon is released and the resulting temperature increase. This means that on top of the 0.9 degrees of warming that we are already experiencing, there is an extra 0.6 degrees that is already pre-programmed for the future – Dr. Thomas Frölicher, researcher at the Swiss Federal Institute of Technology has produced some interesting work in this area. For these reasons, in time we will reach the 1.5 degree target and beyond as we continue to burn carbon.

On track for 3 degrees and more

Commitments by member states for COP21 put us on the 3 degree or more path. Well above the 1.5 degree goal. It is therefore urgent to transform this new target into meaningful policy, to change business models and make sure that we all change our behaviors – something that is far from achieved and which implies much deeper emission cuts then was is currently planned.

Timing is critical

Delegates and politicians still think that climate change is a slow, gradual and linear process. This is not supported by science. In fact, the process is not-linear and there is now a real risk of hitting tipping points that could accelerate climate disruptions with catastrophic consequences. This is why the 2020 entry into force and the 5-year reviews that would start in 2025 are disappointing.

Common but differentiated responsibilities

All countries will have to participate in the carbon reductions but rich countries must help to finance this transition in the developing world by contributing a minimum of $100 billion per year starting in 2020 – a figure that will be revised upwards in 2025. The good news is that new powerhouses like China and South Korea will contribute to this effort. It is also encouraging that countries like India will adopt a low-carbon path for their development, something that was far from achieved just a few days ago.

IMG_0275

Wind Energy Tree at COP21 in Paris

The end of the fossil fuel era

One message from the COP is  that the good days of the fossil fuel era are behind us. Fossil fuel subsidies should be phased-out and we will move towards a price on carbon to speed up the transition to a clean energy economy.

Just the beginning

As Chinese President Xi Jinping said at the opening of COP21 on November 30th, this agreement is just the beginning of a process, echoing warnings from British Climate Ambassador, Sir David King, that carbon reduction targets must be reviewed regularly to accelerate the transition to a low-carbon future. From where we stand today and despite decades of work, it sure seems that we are still at ground zero.