Tower and Town, December 2014

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Hopes And Fears For 2015

Paris 2015 looms large as a focus for hope when the world’s leaders will aim to achieve, for the first time in 20+ years of UN negotiations, a binding, universal agreement on climate change.

The fear is that negotiations fall short and we face further costly delay in actions to avoid the worst impacts.

The US Department of Defence’s recent report states that extreme weather, rising temperatures, unpredictable rainfall and rising oceans could fuel armed insurgency and heighten the impact of a pandemic, through their effects on political instability, poverty, migration and disputes over resources: “Climate change will affect the Department of Defence’s ability to defend the Nation and poses immediate risks to U.S. national security.”

Many big business groups recognise how climate and energy policy decisions have an enormous impact on investments and are concerned about the potential cost and risk associated with delayed action. The World Bank recognises the efficacy of taxation: "The most powerful move that a government can make in the fight against climate change is to put a price on carbon”, but politicians are fearful of the reactions of the electorate.

There is a growing movement in the US for a revenue-neutral carbon tax: a steadily rising tax on the CO2 of fossil fuels, with 100% of the revenues reimbursed directly to all households, protecting them from the financial impact of the transition to a clean energy economy. The rising cost of fossil fuels increases the demand for low emission products, decreasing their cost as production rises and motivates investment in a low carbon economy. Carbon tax border adjustments would protect exports and encourage importing countries to follow suit.

The ‘Carbon Tax and Dividend’ is gaining support here and elsewhere, as an equitable and efficient tool for reducing greenhouse gas emissions and stabilizing our climate.

Jo Ripley