Carbon Tax in England
Great Britains Prime Minister Tony Blair has said that his country will reduce its greenhouse gas emissions by 20 percent below 1990 levels by the 2008-2012 time period, a larger commitment than that agreed to under the Kyoto Protocol. To meet that target, the Blair government proposed the Climate Change Levy that would tax the use of fossil fuels. The tax has met with stiff opposition from industry, which has either opposed it outright or asked for special exemptions.
The Confederation of British Industry, for example, has noted that the Labour government has raised taxes on business by about 5 billion pounds per year since it took office in 1997. “The priority of this Budget [should be] to ease business worries over pressures such as the Climate Change Levy and the road fuel duty escalator,” said CBIs president, Sir Clive Thompson (Times of London, March 3, 2000).
To resolve the controversy, Blair has introduced a CO2 emissions trading scheme, but businesses have said that they will not participate unless there is a reward, such as an exemption from the Climate Change Levy or a cut in other taxes. “For a trading system to work, there has to be an incentive for companies to put themselves on the block by agreeing to targets. Without incentives, it will be very hard to get a system going,” said Chris Fay, chairman of the governments advisory committee on business and the environment (Financial Times, February 28, 2000).
India Should Oppose Emission Targets, Says Environment Group
A new report, “Green Politics: Global Environmental Negotiations,” by the Centre for Science and Environment, has been presented to Indias President Narayanan. The India-based environmental group, argues that international environmental agreements are “skewed” in favor of developed countries.
The Centres director, Anil Aggarwal, argues that the developed countries only focus on issues that concern them in international environmental treaties while ignoring the interests of developing countries. “Not a single government agency, environmentalist or academician has a full picture of what is happening at these environmental negotiations,” said Aggarwal.
President Clinton will be visiting India this spring, and he is expected to raise the issue of Indias participation in the Kyoto Protocol. Aggarwal advised President Narayanan to reject all offers from Clinton, “Since it would compromise development in Third World countries” (Times of India, March 3, 2000).
EPAs Underhanded Regulation
On November 3, 1999, the Environmental Protection Agency filed suit against several electric utilities and the Tennessee Valley Authority, claiming that they were guilty of violations of the Clean Air Act at 17 power plants dating as far back as 1979.
Under the CAAs New Source Review (NSR), power plants that make major modifications are required to install pollution control devices. Routine maintenance, repair, and replacement are excluded from the NSR provisions, however. Moreover, EPA has assumed a life span for utilities of 55 to 65 years during which the NSR provisions would not apply. The utilities argued that the actions for which they have been cited were indeed routine maintenance and repair, and until now were treated as such by the EPA. They feel that the EPA has arbitrarily reinterpreted of its own rules.
Congressman David McIntosh (R-Ind.), chairman of the House Government Reform Subcommittee on National Growth, Natural Resources, and Regulatory Affairs, agrees with the utilities. An aide for McIntosh pointed out that power plant equipment is “used at high temperatures and under extreme pressure with chemical compounds that are corrosive, and it is not surprising that the equipment needs maintenance or replacement.” It would be bad practice it these utilities “did not replace the worn-out equipment with parts that rectify the design flaws of the original equipment,” he said (BNA Daily Environment Report, March 8, 2000).
McIntosh has submitted a letter with questions to the EPA to determine whether its “actions against the utilities may conflict with EPAs own understanding of the CAA and its regulations.” McIntosh expressed concern “that EPAs actions may be motivated by what might be called the Kyoto agenda and ideological animus against coal.”