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CLIMATE CHANGE NEWS TODAY
Climate Change to Spark Economic Depression
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Climate Ark a project of Ecological Internet, Inc.
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October 29, 2006
OVERVIEW & COMMENTARY by Dr. Glen Barry, Climate Ark
Given overwhelming and robust evidence (Item #1 below), the
scientific debate on global warming is now closed and it is time
for action (#2) which will require going beyond science to
policy and advocacy formulation. A major new report by chief
British government (#3-6) and former World Bank chief economist
Nicholas Stern finds that the benefits of determined worldwide
steps to tackle climate change far outweigh the costs, and that
failure to make these investments will lead to "economic
upheaval on the scale of the 1930s Depression", costing "more
than both world wars" while rendering "swathes of the planet
uninhabitable" and turning "200 million people into refugees".
This is not alarmist doomsdayism - it is the best policy
predictions based upon the current science. There are many ways
to know climate change, science being important but just one of
them. The report is the best policy document to date regarding
likely apocalyptic social and economic outcomes of doing nothing
to address the global ecological crises of which climate change
is part and paramount.
"The chance to keep greenhouse gases at a level which scientists
say should avoid the worst effects of climate change 'is already
almost out of reach... the benefits of strong, early action
considerably outweigh the costs'." The report estimates
stabilizing greenhouse gases in the atmosphere will cost about
one per cent of annual global output by 2050. But if the world
does nothing, it could cut global consumption per person by
between five and 20 per cent. He suggested rich nations take
responsibility for emissions cuts of 60-80 per cent from 1990
levels by 2050. Further, a global carbon price was needed,
affixing a clear cost to pollution, and this could be created
through tax (#7) [EI's carbon tax plan at
http://www.climateark.org/lincoln_plan/ ], trading or
regulation. And with only perhaps a decade to act with force, it
is imperative that a Kyoto successor agreement is negotiated as
early as next year.
Comments:
http://www.climateark.org/blog/2006/10/climate_change_to_spark_e
conom.asp
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RELAYED TEXT STARTS HERE:
ITEM #1
Title: UN sees 'far more robust' global warming evidence
Source: Copyright 2006, Reuters
Date: October 29, 2006
Byline: Laura MacInnis
Scientific evidence that human activity is heating the Earth has
become "far more robust" in the last five years, the head of the
United Nations climate change panel said.
Rajendra Pachauri, chairman of the Intergovernmental Panel on
Climate Change (IPCC), said an increase of research on global
warming had added weight to the group's upcoming report, which
is considered a mainstay for environmental policy-making.
"Some of the uncertainties that we had in the scientific
evidence will be reduced. Our evidence will be far more robust,"
Pachauri told Reuters in a telephone interview.
In its last assessment in 2001, the IPCC said there was "new and
stronger evidence" that gases linked to human activities, mainly
from burning fossil fuels in power plants, factories and cars,
were the main cause of global warming.
Its next report, the first chapter of which will be launched in
Paris on Feb. 2, will group research by about 2,000 scientists
on the drivers of climate change and its impacts on weather,
disease, ecology and water supply.
Marked strengthening in the IPCC conclusions might pressure the
United States -- which pulled out of the emissions-cutting U.N.
Kyoto Protocol in 2001 -- to toughen its policies.
President George W. Bush aims to brake the growth of emissions,
which were at about 16 percent above 1990 levels in 2004. The
White House says it will seek to halt or reverse the rise "as
the science justifies".
James Connaughton, chairman of the White House Council on
Environmental Quality, said he did not expect the new IPCC
report to make a big splash.
Half the findings come from U.S.-funded science programmes and
have been factored into policy-making, Connaughton told Reuters
during a U.S.-European Union meeting in Helsinki.
Still, Pachauri said the report could add momentum to what he
called "very encouraging" policy shifts in California and other
states, and amongst the U.S. corporate community.
Public interest in climate change rose after Hurricane Katrina
devastated New Orleans last year, and after the release of
Hollywood films such as "The Day After Tomorrow" and Al Gore's
"An Inconvenient Truth".
"There is an unprecedented level of awareness of climate change
and interest in the subject, and when the report comes out I
expect there to be a lot of attention paid to it," Pachauri
said. "Presumably that will impact the political behaviour of
people across the world." (Additional reporting by Alister Doyle
in Helsinki)
ITEM #2
British government says scientific debate on global warming 'now
closed,' action needed
Source: Copyright 2006, Associated Press
Date: October 29, 2006
Global warming is now a reality and the debate about its
existence is over, Britain's environment minister said Sunday,
before the release of a report on the economic cost of climate
change.
Environment Secretary David Miliband said international action
was needed to curb the emission of greenhouse gases that
scientists say are warming the planet.
"I think that the scientific debate has now closed on global
warming, and the popular debate is closing as well," Miliband
told Sky News television.
"The scientific consensus is that over the last 150 years we've
changed the climate in fundamental ways, above all by the amount
of carbon that we've pumped into the atmosphere from burning
coal for energy, and from transport.
"There isn't really a debate, there's a reality of global
warming," he added.
A report on climate change commissioned by Treasury chief Gordon
Brown is due to be released Monday. The 700-page report,
compiled by senior government economist Sir Nicholas Stern, is
expected to say global warming could cost world economies
trillions of pounds (dollars, euros) and trigger a global
recession, The Observer newspaper reported Sunday.
The newspaper said the report will say the world needs to spend
one per cent of global gross domestic product — which it
calculated as 184 billion pounds (US$349 billion, €274 billion)
— to deal with climate change. Otherwise, the bill would reach
into the trillions.
The report will also recommend that a successor to the Kyoto
climate change accord should be signed next year rather than
waiting for 2010 or 2011 because of the urgency of the problem,
the Observer said.
The report is expected to increase pressure on the
administration of U.S. President George W. Bush — which never
approved the Kyoto accord — to step up its efforts to fight
global warming.
Miliband said action by the United States was key to solving the
problem.
"It's vital that the major emitters like the United States and
the growing economies like China and India are also part of the
solution," he said.
A newspaper reported Sunday that the British government was
considering new "green taxes" to help halt climate change.
The Mail on Sunday said it had obtained a letter written by
Miliband to treasurer Gordon Brown, which called for higher
taxes on cheap airline flights, fuel and high-emission vehicles.
Miliband said the government was discussing a range of options.
"There's been a leak of a document and obviously there are
discussions going on inside government," he said. "I'm not going
to get drawn into what should be a discussion going on inside
government."
ITEM #3
Report warns climate may spark depression
Source: Copyright 2006, Reuters
Date: October 29, 2006
Ignoring climate change could lead to economic upheaval on the
scale of the 1930s Depression, underlining the need for urgent
action to combat global warming, a British report on the costs
of climate change says.
The report by chief British government economist Nicholas Stern,
a 27-page summary of which was obtained by Reuters, says the
benefits of determined worldwide steps to tackle climate change
would greatly outweigh the costs.
The 700-page report, to be published tomorrow, said that no
matter what we do now the chance to keep greenhouse gases at a
level which scientists say should avoid the worst effects of
climate change "is already almost out of reach".
It said the world does not have to choose between tackling
climate change and economic growth, contradicting US President
George W Bush who pulled out of the Kyoto Protocol against
global warming in part because he said it would cost jobs.
"The evidence gathered by the review leads to a simple
conclusion: the benefits of strong, early action considerably
outweigh the costs," said the report, prepared for British Prime
Minister Tony Blair and finance minister Gordon Brown.
"Our actions over the coming few decades could create risks of
major disruption to economic and social activity, later in this
century and in the next, on a scale similar to those associated
with the great wars and the economic depression of the first
half of the 20th century," it said.
It precedes UN climate talks, starting in Nairobi on November 6,
focusing on finding a successor to Kyoto which ends in 2012.
Blair is pushing for a post-Kyoto framework that would include
the United States - the world's biggest producer of greenhouse
gases that cause climate change - as well as major developing
countries such as China and India.
Kyoto obliges 35 rich nations to cut emissions of greenhouse
gases - which come mainly from burning fossil fuels in power
plants, factories and cars - by some 5 per cent from 1990 levels
by 2008-12. Many Kyoto nations are above target.
Stern said that, on current trends, average global temperatures
will rise by 2-3 degrees centigrade within the next 50 years or
so, compared with temperatures in 1750-1850.
If emissions continue to grow, the earth could warm by several
more degrees, with severe consequences that would hit poor
countries most, the former World Bank chief economist said.
Melting glaciers would initially increase flood risk and then
reduce water supplies, eventually threatening one-sixth of the
world's population, mainly in the Indian sub-continent, parts of
China and the South American Andes, he said.
Declining crop yields, especially in Africa, could leave
hundreds of millions unable to produce or buy enough food, he
said. Rising sea levels could result in tens to hundreds of
millions more people flooded each year.
The report estimates stabilising greenhouse gases in the
atmosphere will cost about one per cent of annual global output
by 2050. But if the world does nothing, it could cut global
consumption per person by between five and 20 per cent.
Stern called for a coordinated international approach to combat
climate change, saying the effort must be shared fairly by rich
and poor. He suggested rich nations take responsibility for
emissions cuts of 60-80 per cent from 1990 levels by 2050.
Countering global warming would bring new opportunities to
industry, he said, estimating the market for low-carbon energy
products could be worth at least $US500 billion ($655.78
billion) a year by 2050.
He advocated a doubling of worldwide public spending on research
and development into low-carbon technologies and a sharp
increase in incentives to encourage people to use them.
Stern said a global carbon price was needed, affixing a clear
cost to pollution, and this could be created through tax,
trading or regulation.
ITEM #4
Title: Ten years to save the planet
Source: Copyright 2006, Observer
Date: October 29, 2006
The Stern Report will tomorrow reveal that if governments do
nothing, climate change will cost more than both world wars and
render swathes of the planet uninhabitable. Can the world find
the will to act? Gaby Hinsliff reports
It is almost Halloween, and Rachel from San Francisco is
worrying about pumpkins. She saved last year's decorations to
use again, and recycled rather than bought new cards to send:
there will be no waste once the pumpkins are carved, with the
family eating the seeds, flesh pureed for the cats and remains
composted.
Nonetheless, she feels guilty that the pumpkin purchase 'might
be contentious for some' - and so, she records on her blog, she
has carved them with green slogans to try to 'mitigate the
buying'.
In an age in which even Britons spend £130 million on ghoulish
Halloween fripperies, Rachel may seem to be swimming against the
tide. In fact, she is part of a new and growing movement.
She belongs to Compact, an American group dedicated to avoiding
buying unnecessary products; shopping locally, rather than
buying goods shipped thousands of miles; and combating the
'negative global, environment and socio-economic impacts of US
consumer culture'. It models itself on the Founding Fathers'
pledge of piety as they stepped ashore from the Mayflower, not
the American Dream of shopping until you drop.
Similar beliefs are echoed in Britain by the 'voluntary
simplicity' movement - a mix of greens, anti-corporate activists
and downshifting professionals who either resist shopping or at
least shop more thoughtfully. Their frugality might be familiar
to pensioners raised during wartime but, for the new generation
of thrifters, it is about principles, not economic necessity.
They can afford the gas-guzzling luxuries of modern life: they
just don't want them, now that they recognise their
environmental cost. The woman refusing yet another plastic
supermarket carrier bag or the businessman taking the Eurostar
rather than flying to Paris are, in a smaller way, adopting
voluntary simplicity.
But after tomorrow, many may be asking: what is the point? The
economist Sir Nicholas Stern's report on climate change will
paint an apocalyptic picture over 700 pages of where global
warming could lead, arguing that, unless we act, it will cost
more than two world wars and the Great Depression of the
Thirties and render swaths of the planet uninhabitable. Even if
the world stopped all pollution tomorrow, the slow-growing
effects of carbon already pumped into the atmosphere would mean
continued climate change for another 30 years - with sea levels
rising for a century.
Nor, he will say, is unilateral action by one country enough: if
Britain closed all its power stations tomorrow, within 13 months
China would fill the gap left in global emissions. Given that
the effects will be felt around the world - from the collapse of
the Amazonian rainforest to the melting of Greenland's ice sheet
and changes in the Indian monsoon - the response must be global,
too.
Amid such doomsday warnings, Britons could easily conclude that
trading in the 4x4 or remembering to turn off the lights is
merely whistling in the wind. Intriguingly, when the
Chancellor's right-hand man Ed Balls, Chief Economic Secretary
at the Treasury, was asked at a recent public meeting what he
personally did to combat global warming, he retorted that the
problem was too big for individuals and international action was
essential.
But given Stern's verdict that preventing climate change will
cost 1 per cent of global GDP - about £184 billion a year - and
that it must be done in the next 10 to 15 years, the question
is: where will the money come from? Green groups support people
acting individually to do what they can. But the answers will
not all come from everyone becoming an armchair
environmentalist.
One of the costs is likely to be met by green taxes, an issue
that will be a major part of the report. The Liberal Democrats
have dumped their tax-the-rich strategy in favour of a raft of
green taxes: Tory frontbenchers argue that green taxes should at
least rise as a share of overall taxation. Now Labour is joining
the argument.
Just as the Treasury commissioned a healthcare spending review,
under Derek Wanless, to help soften the nation up for tax rises
to fund the NHS, could Stern pave the way for a little fiscal
punishment now to prevent a future recession? Brown has
certainly told green NGOs that he regards their cause as the
next Make Poverty History, to which he committed significant
government spending.
Either way, the challenge for government is to convince
individuals that the problem is urgent, but without making them
feel it is so daunting that action is pointless.
'This will be a useful reminder that we should do more at home,
but actually the big battle on climate change is international,'
says a senior Whitehall source who has seen the report. 'We're
not dismissing the need to do things, such as introduce a
climate change bill, but it's not the whole answer.'
So what are the answers, and how will our lives change as a
result?
Gerry Acher has a passion for speed. The businessman, recently
made chairman of the Royal Society for the Arts, lives a
comfortable life in commuter-belt Surrey: his indulgence is
cars, and he has been eagerly awaiting the sporty Mini Cooper S
he recently ordered.
That was until he began spearheading Carbondaq, a project that
aims to get the RSA's 26,000 fellows to reduce their emissions
of carbon dioxide. After discovering that his own projected
carbon emissions next year were 25 tonnes - nearly three times
the national average - he cancelled the car for a slower model
with lower emissions, and is now preparing to ration his foreign
holidays. 'I thought, if I commit myself to driving at the speed
limit [which reduces emissions], why am I getting a Mini Cooper
Sport?' he says, wistfully.
Acher's decisions matter because Carbondaq is essentially a dry
run to see whether others could be persuaded into green
altruism: it is designed to test whether so-called personal
carbon allowances, advocated by the Environment Secretary, David
Miliband, would work.
Under the scheme, all adults get a free annual 'carbon ration',
stored on a swipecard: every time they consume something that
contributes to global warming - buying petrol, or booking a
flight - an equivalent amount of carbon is deducted. Once the
credits are finished, people either pay for extra credits or
forego a gas-guzzling activity.
'In my own mind, there is no doubt that [personal carbon
allowances] will come,' says Acher. 'This will help us
understand people's behaviour, what are going to be the
difficult areas.' One of the first to sign up was Miliband
himself: if it works, personal carbon allocation could transform
the way we shop and - above all - travel.
Cheap short-haul flights are at the top of the green target
list. Leo Murray of Plane Stupid, a direct action group, says
aviation emissions are the obvious target because they doubled
between 1990 and 2000, while emissions from other sectors such
as industry fell. He dismisses carbon offsetting - paying
penance for flights by contributing towards eco-friendly
projects such as tree-planting. Plane Stupid just wants
travellers to take the train to Paris or Newcastle.
But Murray admits that, for as long as a peak rail ticket in
Britain costs five times as much as a cheap domestic flight,
most consumers will fly, meaning that relying on individual
altruism will fail.
'The government is peddling a line about how we are supposed to
make individual choices, but the choices don't make sense,' he
says. 'It's often quicker and cheaper to fly to Edinburgh than
get the train, but the reason that's true is because the
government continues to subsidise the airline industry.' With no
tax on aviation fuel and no VAT on plane tickets - both of which
would have to be agreed across the EU - the aviation industry
benefits from an uneven playing field, he argues. As Stern
argues, individuals will get only so far without government
action.
The Tory front bench is making similar arguments. Shadow
ministers are seriously discussing opposing the expansion of
Stansted, because it is the hub for the no-frills airlines whose
expansion, they argue, should not be encouraged. Conveniently, a
number of marginal seats that the Tories need to win lie under
the projected new flightpath.
But the political case for restricting car use is trickier.
Ministers have fought shy of pricing motorists off the road ever
since the fuel protests, but local government is bolder: last
week, Richmond council announced that parking permits for gas-
guzzling cars would rise to a punitive £300: the Mayor of
London, Ken Livingstone, has floated plans to raise the
congestion charge for driving into central London from £8 to £25
for 4x4s. Whitehall is watching closely.
Faced with such costs, it is perhaps unsurprising that up to
11,000 Britons have now abandoned car ownership in favour of car
clubs. Owners pay a set amount to have access when needed to a
pool car parked near their homes, for which they pay an hourly
charge, like a hire car.
Philip Igoe, co-founder of the charity CarPlus, which helps set
up car clubs, says they work because they let drivers save
money: 'I would love to say that [car clubbers] are
environmentally motivated, but the reality is that people will
be green only when it eases the pressure on their pocket. People
will reduce the mileage because the costs become transparent. If
you just want a newspaper, [car owners] will jump in the car: if
that's going to cost you each trip, you are going to walk or go
on the bike.'
In other words, car owners remember how much driving costs them
only once a year, when they pay their car tax or insurance: car
clubbers, shelling out each time they drive, typically reduce
their mileage by up to 80 per cent.
The Department for Transport is now considering a bid from
CarPlus for £12 million to expand car clubs nationwide - less
than a tenth of the money being spent on widening the M1 - for
which Carplus estimates that, by 2015 it could have enrolled 5
per cent of the population.
Nonetheless Igoe admits that most motorists will always want
their own wheels; and, while cleaner electric-petrol hybrid cars
are increasingly popular, one seminar organised by Stern
anxiously debated the 'Jeremy Clarkson factor' - would Top Gear
viewers ever choose a green car over a faster one?
Put simply, there is only so far Britons will go. While a recent
Department for Transport survey found that 70 per cent of adults
think air travel harms the environment, that did not stop 49 per
cent flying at least once in the past year. We know now what our
lifestyles do to the planet, but will we change them?
Recent research from retail analysts Mintel suggests that, at
least when it comes to shopping, we have already changed:
Britons will spend more than £2 billion on ethical foods such as
fairtrade coffee or organic vegetables this year, up nearly two
thirds since 2002.
Critics, however, argue that green consumerism is essentially
for the middle classes - who can afford a £200 jacket from Edun,
the ethical clothing line run by Bono's wife, Ali Hewson - not
the masses. Yet, as Stern will explain, the biggest victims of
climate change will be the world's poorest.
Africa will suffer temperature increases double the global
average, according to British forecasters the Hadley Centre. The
countries already suffering frequent extremes of temperature are
often the most poorly defended against them.
In an analysis for the Tories' policy commission on green
issues, environmental scientist Professor Mike Hulme shows how
the floods that ravaged central Europe in 2002 caused more than
15 billion euros of damage, but killed fewer than 100 people.
Similar flooding in Mozambique in 2002 did far less financial
damage - with less valuable property to wreck - but killed more
than 700.
And it is not only freak weather. A temperature rise of two
degrees would drastically shrink the land available in Uganda
for growing coffee, and cut farmers' incomes in India by 9 per
cent, as crops failed.
And even the West might struggle financially. Hurricane Katrina
- which led to the flooding of New Orleans - is likely to be the
single most expensive insured event in history, costing up to
£25 billion, according to evidence from insurers AXA submitted
to Stern.
There are other costs, too. Margaret Beckett, the Foreign
Secretary, warned last week that competition for water supplies
and fertile land could lead to war as people are forced into
mass migrations: Oxfam's submission to Stern includes a detailed
study of the Turkana tribe of northwestern Kenya. Their
traditional nomadic life has been threatened by extended
droughts, while raids on their herds by drought-stricken
neighbours have heightened tribal tensions just as wars in Sudan
and Uganda have flooded the region with guns, making the clashes
more violent and likely to escalate.
Food shortages in rural areas can also drive women into the
cities, where they fall into prostitution, helping to spread
HIV; Christian Aid estimates that, by the end of the next
century, a staggering 182 million Africans will have died from
the effects of climate change.
Yet the West, according to the New Economics Foundation, spends
nearly twice as much subsidising fossil fuel industries as it
does helping Africa adapt to climate change, for instance by
growing drought-resistant crops.
But the major dilemmas are posed not by the poorest countries,
but by emerging powerhouses such as China and India, struggling
to balance their need for rapid economic growth with the
devastating effects of climate change on traditional farming.
The Indian state of Orissa, fast emerging as a centre for new
power stations, will alone shortly produce 3 per cent of the
world's emissions, say local environmentalists, but when the
steel plants pay labourers ten times what they earned farming,
is it ethical to stop them?
Similarly car ownership in China, once almost unheard of, has
risen by a third in the past two years and the tendency to buy
cheap, badly maintained second-hand cars may mean they pump out
more fumes than Western ones.
When even the non-shopping movement in Britain and America has
become an industry itself, it seems unrealistic to expect
emerging societies to abstain.
Instead, Tony Blair is pinning his faith on showing that Britain
has reduced greenhouse gas emissions while still enjoying
economic growth, implying that China and India do not have to
choose between raising living standards and saving the planet.
But that relies on the West continuing to pull off this tricky
balancing act, while finding the billions that Stern says are
needed. And, meanwhile, individuals will do what they can,
turning off the TV and taking the train.
The climate crisis:
• The US, Europe, Japan, India, and China together claim 75 per
cent of the earth's 'biocapacity,' effectively leaving 25 per
cent for the rest of the world, according to the Worldwatch
Institute.
• In 2005, China alone used 26 per cent of the world's steel, 32
per cent of the rice, and 47 per cent of the cement.
Total carbon emissions (million metric tonnes of CO2)
US
1984: 4,597.85
2004: 5,912.21
UK
1984: 566.88
2004: 579.68
India
1984: 400.55
2004: 1,112.84
Japan
1984: 895.64
2004: 1,262.10
China
1984: 1,707.91
2004: 4,707.28
Top World Oil Consumers, 2005 (million barrels per day)
1) United States: 20.7
2) China:6.9
3) Japan:5.4
4) Russia: 2.8
5) Germany: 2.6
6) India: 2.6
7) Canada: 2.3
8) Brazil: 2.2
9) Korea, South: 2.2
10) Mexico: 2.1
11) France: 2.0
12) Saudi Arabia: 2.0
Source: US government
ITEM #5
Title: £3.68 trillion: The price of failing to act on climate
change
Landmark report reveals apocalyptic cost of global warming
Source: Copyright 2006, Guardian
Date: October 29, 2006
Byline: Gaby Hinsliff
Britons face the prospect of a welter of new green taxes to
tackle climate change, as the most authoritative report on
global warming warns it will cost the world up to £3.68 trillion
unless it is tackled within a decade.
The review by Sir Nicholas Stern, commissioned by the Chancellor
of the Exchequer and published tomorrow, marks a crucial point
in the debate by underlining how failure to act would trigger a
catastrophic global recession. Unchecked climate change would
turn 200 million people into refugees, the largest migration in
modern history, as their homes succumbed to drought or flood.
Stern also warns that a successor to the Kyoto agreement on
cutting greenhouse gas emissions should be signed next year, not
by 2010/11 as planned. He forecasts that the world needs to
spend 1 per cent of global GDP - equivalent to about £184bn -
dealing with climate change now, or face a bill between five and
20 times higher for damage caused by letting it continue.
Unchecked climate change could thus cost as much as £566 for
every man, woman and child now on the planet - roughly 6.5
billion people.
The 700-page report argues that an international framework on
climate change covering the globe will be necessary, and that
different countries may opt to reduce emissions differently.
Options range from many more green taxes to carbon trading.
Stern's verdict will create fierce political debate, with a
growing belief in government that taxes on activities such as
driving or flying will have to rise.
A leaked letter from the Environment Secretary, David Miliband,
to the Chancellor, in the Mail on Sunday, proposes a range of
'green' tax increases.
Stephen Byers, the former cabinet minister and member of an
expert panel of international politicians on climate change, is
meanwhile urging new taxes to help change behaviour, including a
'global warming premium' on exotic fruit, vegetables and flowers
flown thousands of miles across the world.
'There will need to be a global response [to Stern], but it must
also filter down to change at domestic level,' he told an
audience of businessmen in China this weekend. 'For the Labour
party there must be no no-go areas for policy debate. The
politics of taxation is changing and we need to be leading the
debate, not playing catch-up. We should consider how we can
change the structure of our tax system in a way which benefits
the lowest-paid and penalises environmentally damaging
activity.'
Byers is the first of several senior Labour figures expected to
go public over green taxes, reflecting views within Downing
Street that the public now fears climate change sufficiently to
pay more for gas-guzzling activities. Charles Clarke, the former
Home Secretary, is expected to join the debate, while Alan
Milburn raised the issue in a recent speech. Such interventions
will irritate the Chancellor, who regards taxation as his turf,
particularly in advance of his autumn pre-budget report.
Air freight is one of the most lightly taxed areas of transport
since aviation fuel is tax-free and there are no passengers to
pay duty. Yet green campaigners say the planet can ill afford
the thousands of 'food miles' travelled by exotic produce. One
kilo of kiwi fruit flown from New Zealand to Europe discharges
5kg of carbon into the atmosphere. Other options include hiking
car tax on fuel-inefficient vehicles and cutting stamp duty on
the purchase of energy-efficient houses. Byers will argue tax
rises should be offset by cuts elsewhere.
The Stern report will advocate extending the European 'cap and
trade' system - under which carbon emissions are capped at a
certain level, with businesses which need to emit more forced to
buy spare emissions quotas from low-polluting businesses around
the world, encouraging industry to find cleaner and cheaper ways
of operating.
He will also urge a doubling of investment in energy research
and a speedier Kyoto process - meaning that negotiations with
the US will have to be undertaken while George Bush is still
president. International governments had hoped to deal with a
more sympathetic successor after 2008.
Downing Street and the Treasury believe that the report marks a
decisive moment in international politics. Stern's is the first
heavyweight contribution by an economist rather than a scientist
and senior officials believe he will make what might seem a
hopelessly ambitious timetable credible. 'This will give us an
argument to make,' said a Whitehall source. 'I think we are at a
tipping point in terms of the debate, as we were at a tipping
point in 2004/05 in terms of the science.'
Stern's forecast cost of 1 per cent of global GDP is roughly the
same amount as is spent worldwide on advertising, and half what
the World Bank estimates a full-blown flu pandemic would cost.
Without early intervention, he estimates the cost would be 5-20
per cent of GDP, some paid by governments, some by the private
sector. But he stresses that unilateral action will not be
enough - if Britain shut down all its power stations tomorrow,
the reduction in global emissions would be cancelled out within
13 months by rising emissions from China.
Stern will advocate new funds to help Africa and developing
nations adapt, but will argue the key challenge is from emerging
nations such as China and India. Emissions from China are nearly
level with the US and likely to increase as the Chinese get more
cars and electrical goods - up to 30 million households are
likely to get digital TVs alone in the next few years. Britain
will push this week for more energy-efficient consumer goods.
The Tory environment spokesman, Peter Ainsworth, who has argued
green tax should rise as a proportion of overall taxation, said
he hoped the Stern report 'spurs the government into being much
more proactive than it has been'.
Britain's share of revenue from green taxes is lower now than in
1994, partly because of the freezing of petrol duty after fuel
protests.
Green taxes are controversial because if they do change
behaviour, tax income falls, emptying Treasury coffers. But
supporters argue that, over time, the tax system could be
shifted back towards more personal taxation.
ITEM #6
Title: Key points in UK climate change report
Source: Copyright 2006, Reuters
Date: October 28, 2006
Ignoring climate change could lead to economic upheaval on the
scale of the 1930s Depression, underlining the need for urgent
action to combat global warming, a British report on the costs
of climate change says.
Here are some key findings from the report, a 27-page summary of
which was obtained by Reuters:
* On current trends, average global temperatures will rise by 2-
3 degrees centigrade within the next 50 years or so.
* If emissions continue to grow, the earth could warm by several
more degrees, with severe consequences that would hit poor
countries most.
* Stabilising greenhouse gases in the atmosphere will cost about
1 percent of annual global output by 2050. If no action is
taken, climate change will reduce global consumption per head by
between five and 20 percent.
* The global power sector will have to be at least 60 percent,
and perhaps as much as 75 percent, decarbonised by 2050 to
stabilise greenhouse gases in the atmosphere.
* Markets for low-carbon energy products are likely to be worth
at least $500 billion per year by 2050, and perhaps more.
* Worldwide incentives to encourage the use of new low-carbon
technologies should be raised by two to five times from the
current level of some $34 billion a year.
* Emissions from deforestation are estimated to represent more
than 18 percent of global emissions, a share greater than is
produced by the global transport sector.
* The poorest developing countries will be hit earliest and
hardest by climate change. The international community has an
obligation to support them in adapting to climate change.
ITEM #7
Title: Report: Britain considering 'green taxes' to help combat
climate change
Source: Copyright 2006, Associated Press
Date: October 28, 2006
A British Sunday newspaper reported that the government could
levy new "green taxes" to halt climate change.
The Mail on Sunday said in early editions Saturday that it had
obtained a letter written puportedly written by Environment
Minister David Miliband, to the treasurer, Gordon Brown, which
called for higher taxes on cheap airline flights, fuel, and
high-emission vehicles.
The government should "increase the pace of existing tax
measures, broaden them into sectors where incentives to cut
carbon emissions are weak and identify new instruments to drive
progress in tackling greenhouse gas," the newspaper quotes the
letter as saying.
Low-cost airline flights are an area a five pound (US$9.50;
€7.45) increase in taxes, would raise 400 million pounds (US$760
million; €600 million) a year, the report said. The letter
recommends that the government explore a "substantial increase"
in taxes for high-emission vehicles, the newspaper said.
The newspaper quoted an aide to Miliband as saying that the
letter contained only ideas, rather than a package of measures.
On Monday, a report on climate change, commissioned by Brown, is
due to be released. The 700-page report is expected say global
warming could cost world economies trillions of pounds (dollars,
euros), the Observer reported.
The newspaper said the report will say the world needs to spend
one per cent of global gross domestic product — which it
calculated as 184 billion pounds (US$349 billion; €274 billion)
— to deal with climate change; Otherwise, the bill would reach
into the trillions.
The report will also recommend that a successor to the Kyoto
accord should be signed next year rather than waiting for 2010
or 2011 because of the urgency of the problem, the Observer
said.