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Something rotten in Denmark? Why road transport in the ETS is a bad idea

Thu, 2014-09-04 14:19

By Jason Anderson, Head of EU Climate and Energy Policy, WWF European Policy Office

A couple of years ago I went to an event at which gas enthusiast Dieter Helm browbeat climate DG Jos Delbeke about the insufficiencies of the current EU Emissions Trading System (in typical economist-speak the answer according to Helm is, assuming the political will to pass an adequate carbon tax, we’d have the money we need for innovation). Delbeke invited Helm to walk a mile in his shoes and see how much political will he could assume then. They agreed to disagree on the ETS, but happily converged in their common praise for the EU’s approach to vehicle efficiency standards, which are steadily driving down CO2emissions from cars.

So here’s an idea: mess up the one policy everyone agrees is effective, and put a greater burden on the one policy everyone agrees isn’t working properly. By putting road transport into the EU ETS, for example. That’s the position taken by the car industry and some countries, notably Denmark, which is showing themselves to be uncharacteristically short-sighted and self-interested on this point. The idea has crept its way into the Council’s 2030 negotiations as an option for national opt-in, according to the document leaked this Monday,

Fortunately, today Transport and Environment has released a timely and well-argued paper with the self-explanatory title ‘Why putting road transport in the ETS is a bad idea.’ Three main arguments follow: the ETS won’t deliver carbon savings in transport, inclusion of transport will damage the ETS and increase costs, and inclusion in the ETS jeopardises more effective policies.

WWF took a similar position in 2007 prior to the last major ETS review, which resulted in primarily sensible reforms, but without preventing the twin causes of the ETS’ current woes: insufficiently stringent allocations, and too-generous access to offsets for compliance. The basics, in other words. Adding road transport to the ETS is a bad idea generally, but positively reckless while simultaneously failing to tackle the ETS’ main problems head-on.

 

 

The two-party system: Pandering and other sins

Wed, 2014-09-03 18:39
AMERICA'S two-party system is a creaking monstrosity that has helped bring its politics to a grinding halt. The country urgently needs a nationally competitive third party (if not a fourth and a fifth) to crack up its frozen ideological landscape, and to shift incentives away from the politics of total resistance and towards deal-making and compromise. That said, it is not entirely clear just how big a role the two-party system plays in creating America's policy paralysis. Many factors have combined to hobble American governance. How important is the two-party system, specifically?Salomon Orellana, a political scientist at the University of Michigan, thinks it plays a big role. In a post at the Monkey Cage, Mr Orellana argues that in two-party systems, politicians tend to "pander", promising voters easy material gains without corresponding costs. He applies this theory to the issue of climate change. In two-party systems, when one party panders on material comfort (e.g., “gasoline prices have risen under the current government”) or even survival (e.g., “carbon taxes will cost jobs”) versus doing something about climate change, the other party feels great pressure to follow suit. This dynamic also tends to reduce dissent on issues like carbon taxes....In multiparty systems, smaller parties can take the risk of promoting dissenting ideas, including suggestions that ...

Green Column: Interest in Solar Water Heating Spreads Globally

Wed, 2014-09-03 08:57
Many developing countries, which struggle with high energy prices relative to income, have embraced the technology.

Vice premier expects Chinese, Russian energy giants to expand co-op

Mon, 2014-09-01 07:11
Visiting Chinese Vice Premier Zhang Gaoli expressed the hope here Saturday that oil and gas giants from China and Russia will further expand bilateral energy cooperation for even greater successes on the basis of achievements already made.

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