New Zealand Considers Gas Tax
As part of its effort to reach its Kyoto targets, the New Zealand government is planning to introduce a tax to help pay for research into livestock emissions of methane and nitrous oxide, which account for more than half of the country’s greenhouse gases.
The tax will be paid by the countrys farmers, and is expected to cost them NZ$8.4 million (about US$5 million at current exchange rates). The levy will take the form of a 9 cent tax on each of the countrys 46 million sheep and 72 cents on each of the nine million cows.
Farmers are resisting the move. Federated Farmers President Tom Lambie told Reuters, “This decision is yet another example of the government’s desire to act in the wider public interest but expecting rural New Zealand to pay for its largesse.” (Reuters, June 19).
EU Agrees on Trading Scheme
The European Parliament and the EUs member governments have reached agreement on the content of an emissions trading scheme. The agreement will be incorporated into a bill currently before the Parliament, which is expected to be approved at its second reading the week beginning 30 June, after which it will become law following formal adoption by the EU Council of Ministers.
EU member states extracted the concession from the parliament that they will not be subject to a quantitative cap on the amount of allowances they can distribute. They are restricted in issuing “no more than is likely to be needed” for the “strict application” of national emissions allocation plans. For the initial 2005-2008 trial period, this must also be “consistent with a path towards achieving or over achieving” Kyoto Protocol targets.
The parliament also conceded that auctioning of emissions allowances could remain voluntary, despite its earlier insistence on the guaranteed sale of at least a small portion. During the initial period, up to five percent may be auctioned, with 10 percent from 2008. There is a promise of harmonized EU auctioning of allowances “after 2012.” The parliament did win its wish for limitation of an opt-out clause during the initial phase to individual installations rather than whole industry sectors.
Environmental New Service reports that inclusion of other sectors and other greenhouse gases beyond carbon dioxide remains optional, though there is a stronger commitment for the addition of the chemicals, aluminium and transport sectors when the European Commission reviews the law at the end of next year.
The spokesman for the parliaments Greens, Dutchman Alexander de Roo, expressed the hope that the agreement would “put pressure on the Russian Duma” to ratify the Kyoto Protocol. The protocol cannot come into force until either the US or Russia ratifies it. (ENS, June 25).
Alberta Has the Energy U.S. Needs
Ralph Klein, the premier of Alberta, Canada, described his province’s vast hydrocarbon resources in a speech in Washington, D. C. on June 25. The possibility that the Kyoto Protocol could limit future use of these resources was not raised by Klein or in any of the questions from reporters at the lunch, which was sponsored by the Edison Electric Institute, U. S. Energy Association, and G. F. Energy. The premier did mention that Alberta’s energy resources, although enormous, would eventually run out.
Alberta has proven reserves of 176 billion barrels of oil. The rest of Canada has less than 3 billion, the U. S. has 22 billion, and Mexico has 13 billion barrels. Approximately two thirds of Alberta’s reserves are contained in heavy oil sands.
Klein described technological advances that have made production from oil sands economically feasible in the last few years. He said that 32% of Canada’s petroleum production came from oil sands in 2002. The provincial government expects this to grow rapidly as $50 billion is invested in oil sands development in the next 15 years.
Alberta also has huge reserves of natural gas, coalbed methane, and coal. Currently, the province supplies 14% of the gas consumed in the U. S. Klein said that increased supplies from Alberta were only part of the answer to the increasing demand for gas in the U. S.