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” 

1280px-Sustainable_Development_Goals_chart
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.

 

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

 

 

COP21 – La naissance de l’humanité

IMG_0188

Voici quelques réflexions de Jean-Louis Servan-Schreiber, journaliste, écrivain et membre du conseil d’administration de Human Rights Watch, sur l’accord sur le climat annoncé le 12 Décembre au Bourget à Paris. Avec Jean-Louis et Corinne Lepage nous avons présenté la Déclaration des droits de l’Humanité durant la Conférence sur la Jeunesse (Conference on Youth – COY) qui a précédé les négociations sur le climat. ENGLISH VERSION

COP21 – La naissance de l’humanité

La mémoire des médias gardera cette scène de liesse au Bourget dès l’annonce de l’accord climatique à la COP21. Depuis les objections, critiques et analyses de ses insuffisances ne manquent pas. Elles étaient inévitables et beaucoup sont fondées.

Mais le plus important quand il s’agit de l’avenir de l’humanité ne pouvait pas être que rationnel. L’émotion collective, même fugace a offert au monde, les images de ce qui nous rend tous solidaires. Grâce au numérique, nous les reverrons encore et encore, pour que personne ne puisse oublier que ce qui nous lie est plus impératif que ce qui nous divise.

Pour transformer cet essai, il ne suffira pas, comme au rugby d’un coup de pied magique. Il faudra, des décennies durant, les efforts des militants, des gouvernants, des savants, des associations, des artistes. Mais, plus que tout de chaque nouvelle génération découvrant le monde dans lequel elle va devoir vivre.

Ce moment d’unanimité a donné existence à l’humanité, au-delà des nations, des croyances, des intérêts. On a senti, pendant quelques minutes combien cette petite flamme naissante, fragile, encore vacillante, nous était pour nous et nos enfants si infiniment précieuse.

L’émotion de ce final entre négociateurs épuisés et rayonnants s’est déjà inscrite patrimoine de l’humanité.

Jean-Louis Servan-Schreiber

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.

Searching for Endurance – Part 2

Part 2 of In Search for Endurance at COP21

Chamonix-based glaciologist Luc Moreau kindly agreed to speak after the screening of Luc Hardy’s “In Pursuit of Endurance” at the Rochexpo Naturelia fair in La-Roche-sur-Foron near Geneva. Chamonix, home to la “Mer de Glace” (sea of ice), the largest glacier in France and the winter vacation destination of choice for nature lovers, is at the forefront of climate change – warming 2 to 3 times faster then the global average.

Passionate about defending his playground, Luc made a provocative plea for action and I hereby summarize his most interesting perspective:

When the stewardess on an airplane explains how to use the oxygen mask she first says you should put yours first and only then that of your child. 

YES, let’s be selfish and we can then also save our children, give them fresh air and a climate they can live in!! and also then save others… If we don’t do it for ourselves then our children are doomed anyway. That is the only way forward. Selfishness!

We are so smart, all this science and knowledge and the only way we can find to save this environment that gives us life, air to breathe and water to drink is to be selfish. Only our selfishness can save us because that is the only thing we are really good at. We know how to do it, let’s be selfish now and let’s do it together…. and future generations will also benefit!!

Why slowly destroy the environment that we live? wildlife, plants, oceans, biodiversity, air, water… We can reverse this destruction if each and everyone does something and then a little something more. Carpooling, cycling, reducing and sorting waste, push for better regulation that taxes what destroy and supports what restores… We blame China? But China produced all the products that we love so much…

We cannot fix everything but we must show some direction, we must show that we care. Even if we sometimes make mistakes, we must change course, focus on what works and move forward. Just like in Aikido we do not try to counter evil, we deflect it and reverse this force to turn it into a positive.

So let’s be selfish together!! We have caused a global problem and we must therefore unite our forces globally to fix it together. Create a political party with all parties involved! Without labels but with all the smart people, their experience, philosophers and humanists, economists and financiers and why not a few community organizers with the spirit to do well for everyone!

Ernest Shackelton, if he were alive today, would give this leadership to steer humanity on the path to sustainability because he was a real leader – he was a real captain!

So, Luc (Moreau), who are you to give advice? 

What have I done? not much, carpooling, biking, public transport… it’s nothing! a drop in the ocean. But the ocean is made of individual drops!! And if we all do this then we will soon breathe more easily…

We are at our last crossroad, our last chance to change course. Let the spirit of Shackleton inspire our most selfish instincts to save ourselves …and our children too.

By Luc Moreau

 

Human Rights in the Anthropocene, by William Becker

Idealism got a bad name somewhere along the way. Google on it and one of the definitions that pops up is “the practice of forming or pursuing ideals, especially unrealistically.” The psychologist Carl Jung called it as bad an addiction as narcotics and alcohol — “the tendency of high-minded people to avoid facing the reality of evil,” as one Jungian put it.

True, it is difficult to remain idealistic in a world that produced Hitler, Pol Pot and ISIS. Idealism is less fashionable, less street-smart. There are advantages to cynicism. When we expect the worst, we are not disappointed when we get it. Cynicism is perverse evidence that a person must have standards, since he expects the world to fall short of them.

The debate about cynicism and idealism runs through our literature. Victorian novelist George Meredith noted that cynics “are only happy in making the world as barren for others as they have made it for themselves.” Oscar Wilde observed that a cynic “knows the price of everything and the value of nothing.” George Carlin believed you could “scratch any cynic and you’ll find a disappointed idealist.” Swiss essayist Alian de Botton agreed: “Cynics are — beneath it all — only idealists with awkwardly high standards.”

On the other hand, science fiction writer Glen Cook defends his lack of faith in humanity by arguing that “every ounce of my cynicism is supported by historical precedent.” Russian poet Joseph Brodsky felt that “Life — the way it really is — is a battle not between good and bad, but between bad and worse.” The late Mike Royko, the Pulitzer price columnist in Chicago, wrote “Show me somebody who is always smiling, always cheerful, always optimistic and I will show you somebody who hasn’t the faintest idea what the heck is really going on.”

But without idealism, we would not have the Declaration of Independence, the Bill of Rights or the U.S. Constitution. We would not have wedding vows, John Lennon songs, or a papal encyclical on stewardship of the environment. We would not have the United Nations Charter, the Earth Charter, the UN’s Millennium Development goals, or the UN’s sustainable development goals. We would dream too small, expect too little and chronically underachieve.

A cynic probably would argue that all of the pronouncements of the world’s idealists – the declarations, treaties and charters — are not worth the paper they’re printed on, that their idealism is rarely justified, their hopes are seldom fulfilled and their plans usually are not accomplished. But can anyone argue credibly that a world without ideals and idealism would be a better place? Idealism invokes our better angels. It reminds us of what we would be if we were all that we could be. It is our collective conscience and the hope with which we survive divine discomfort.

This all comes to mind because of a message from a good friend in Europe who has been involved in developing a Universal Declaration of the Rights of Humanity, a document commissioned by French President Francois Hollande. Hollande asked a former minister of environment in France, Corinne Lepage, to develop a statement for “a new stage in the field of human rights” for presentation at next month’s international climate conference in Paris.

lepage-2

Corinne Lepage and her project team giving the Rights of Humankind Declaration Report to French President Francois Hollande.

The result from Lepage and her team is not the first such declaration. It updates two others, both with their roots in crisis and in France. The first — the Declaration of the Rights of Man and of the Citizen — was inspired in part by the American Revolution, written for the French Revolution and approved in 1789 by France’s National Constituent Assembly. The second is the Universal Declaration of Human Rights adopted in Paris in 1948 by the UN General Assembly in the wake of World War II.

The crisis that inspires the new Declaration is not a war against classes or between nations, but the war that mankind is waging against the Earth’s life support systems and the war that the generations alive today are waging against the generations yet to come.

The human rights expressed in the new Declaration include the ability to live in healthy and ecologically sustainable environments and to preserve the natural resources that humanity holds in common. With these rights come obligations, the Declaration says, including the duty to respect the rights of others and of all living species; to serve as guarantors of ecological balance and our natural and cultural heritage; to ensure that scientific and technical progress work for rather than against the well-being of humans and other species; and to think about the long-term consequences of our short-term actions.

The authors of the new Declaration definitely know “what the heck is really going on”. It was their knowledge and their determination not to turn away from it that demanded a new invocation of higher principles and ideals.

Consistent with France’s tradition as the birthplace of these declarations, President Hollande intends to introduce the new document next month when more than 190 nations meet for the international climate conference in Paris. Hollande will ask the UN General Assembly to formally approve the Declaration next year. In the meantime, the Declaration’s ambassadors including some 40 million Scouts, will spread the word.

PJW2115

Corinne Lepage, Nicolas Imbert and Adam Koniuszewski accompanied by Scout representatives from around the world

Of what use is such a document? Only a cynic would ask.

Readers can co-sign the Declaration at LINK. For more information, contact Adam Koniuszewski, who was a member of the Corinne Lepage project team, at adamkoniuszewski@me.com.

The full project team includes: Ahmed ALAMI, Marie-Odile BERTELLA-GEOFFROY, Valérie CABANES, Francois DAMERVAL, Hubert DELZANGLES, Emilie GAILLARD, Christian HUGLO, Nicolas IMBERT, Adam KONIUSZEWSKI, Jean-Marc LAVIEILLE, Catherine LE BRIS, Bettina LAVILLE, Jérémy RIFKIN and Mathieu WEMAERE.     

This article was written by William S. Becker, Executive Director of the US Presidential Climate Action Project and originally published in the Huffington Post: LINK

The website of the Declaration in French and English can be found here

The Universal Declaration of the Rights of Humankind

The report for a “Universal Declaration of the rights of humankind” was delivered last Friday by French ex-Minister of the Environment, Corinne Lepage and her team at the Elysée in Paris. The project originated from a request by the President to build on the human rights declarations and “laying the rights humankind, that is to say, the right of all people on Earth to live in a world whose future is not compromised by the irresponsibility of the present generation”, Francois Hollande, October 2014.

lepage-2

Stemming from the 1789 Declaration of Human Rights, the Universal Declaration of Human Rights (Paris 1948), and existing agreements and statements on development, the environment and future generations, the statement includes four principles:

  1. intergenerational solidarity
  2. dignity of humankind
  3. the continued existence of humankind,
  4. the non-discrimination on grounds of membership to a generation

“How can we guarantee to future generations the right to live in dignity and in a clean and safe environment?” said Valérie Cabanes, international lawyer specializing in human rights. Adding that “the consequences of our consumption patterns and production choices have become a threat to peace and human security”.

IMG_1616“Civil society from around the world must now mobilize and carry the message of the declaration so that it is widely shared and endorsed ahead of the December Climate Conference in Paris. This process is underway and the response so far is just amazing”, commented Corinne Lepage.

3pm1moull2dxjbwa5rvc

Next steps

  • special announcement in Geneva on October 6
  • a broad consultation on the declaration
  • a side event on the subject will be held during the COP21

The objective being the adoption of a statement on the Declaration by the United Nations General Assembly in 2016. Given that this is a statement and not a binding document, it should be easier for member states to accept.

Project Team

The team that prepared the declaration and joined Corinne Lepage to deliver the report includes: Ahmed Alami, Marie-Odile Bertella-Geoffroy, Valérie Cabanes, Francois Damerval, Hubert Delzangles, Emilie Gaillard, Christian Huglo, Adam Koniuszewski, Jean-Marc Laveille, Catherine Le Bris, Bettina Laville and Mathieu Wemere.

IMG_1620Related Links

Elysée Release Link

Valérie Cabanes Article

MetroNews Article (French)