10 reasons why carbon pricing is a solution for climate change … and why this is the perfect time to implement it

By Adam Oliver, StopGlobalwarming.eu Campaigner Germany and Nordics 

As the world continues to struggle with the impact of the Covid 19 virus, it can be easy to forget the other impending doom humanity faces - the ever increasingly stark reality of a climate change hit planet. Nevertheless, while it is too late to prevent Covid, there is still time to avert the worst impacts of man-made global warming. 

Ahead of September 23rd EU Summit StopGlobalWarming.eu held an online marathon aptly titled ‘HEY EU, TAX CO2’, aimed at spreading awareness of our European Citizens Initiative, a plan, backed by 27 Nobel Laureates and over 1000 scientists, to bring Carbon Tax onto the EU legislative table.

In this article, we look back on the key arguments brought to the table during this event, by some of the leading experts propagating the implementation of a carbon tax, who come from a wide range of sectors and fields of knowledge.

1) Move Away from ‘Old School’ Methods of Change

For too long the EU has carried out an ‘old school’ protectionist strategy of its economic sectors and industries. This is the view at least of Maxim Sbaihi, the managing director of Génération Libre, who sees such a method for transition ultimately doomed to failure. Instead of continuing on a path of top-down subsidisation and investment in ‘green’ industry, the EU should focus on visionary pathways and policy to change, such as carbon pricing, which would relocate investment away from the traditional industry and move towards genuinely greener and more future assured economic growth. This is not to suggest financial incentives aren’t important in encouraging change. Simply, with legislation such as the carbon pricing tool, it can be certain investment is pushing the economy and the EU market as a whole in a sustainable direction.    

2) EU Market at the Forefront of Innovation

The EU as a political and economic regional bloc esteem itself for often taking a leading and prominent role in much of the advancements we see today in the modern world. By wanting to retain this designation and with issues related to climate change posing an ever greater concern, the EU must carry out policy such as carbon pricing which lead the way in terms of innovation and progressive change for a better world. The adoption of such legislation could also involve the implementation of a European CO2 border tax, thereby placing pressure on other economies and businesses to change their practises or else suffer financially. In this way the EU carbon pricing policy can be seen as an eventual model to be followed by other regional or country-based markets. 

3) Can Help in The Move Towards a Just Transition

This point was brought up on a number of occasions by speakers during the digital marathon event. A Just Transition is the process by which the current extractive means of production are shifted towards a more regenerative one. This process and the principles encompassed within are based around the necessity of seeing the economy as a cog within a wider holistic viewpoint of society. For Sam Van den plas, policy director of Carbon Market Watch, a sustainability shift can only be perceived as successful when the given climate goals, such as those of the Paris agreement, are achieved alongside and paired with a socially fair transition. A carbon pricing policy allows for this by removing the burden of taxation from the European citizens to the CO2 emitters.

4) Distributional Fairness and Compensation

Following on from the previous point, carbon pricing legislation can help to successfully transition towards a fairer society, without leaving people, businesses or even whole sectors behind. The revenue generated by such a policy can, for instance, allow for distributional fairness to take place. As highlighted by Nick Beglinger, founder of Cleantech21 Foundation, during the Hey EU, Tax CO2 marathon, distribution schemes such as the one currently operating in Switzerland can see as much as 60-70% of households gaining monetarily. Additionally, revenue could also go towards compensation and subsidisation of those who struggle the most given the large-scale economic shift such a policy would entail. This would help ensure that even those sectors which look to lose the most from an ultimate move towards carbon neutrality, would in fact not do so.

“the single most important piece of policy to implement” 

James Collis - Chairperson for Citizens Climate Europe

5) Would Have Long-Term Public Support

As already highlighted in this article, a number of the benefits of carbon pricing result in the wider public benefitting from them and not just a wealthy minority, who often gain more advantages from such economic upheaval. James Collis, chairperson of Citizens Climate Europe pointed out how a similar policy in Canada has held steady public support since its inception. Combined with the simplicity of the policy, its favourability makes a CO2 emissions tax a highly deliverable and effective long-term legislation. This is also a key factor in why this can be such an important solution for climate change. With long-term public support the policy can remain in place, despite shifts or changes in administrations.

6) Dynamic and Flexible Policy 

Each speaker, while giving their support for carbon pricing, highlighted different elements of the policy which, for them, makes it such an important solution to help fight against climate change. That there is the possibility that all the speakers could highlight differing beneficial aspects of the policy demonstrates one of carbon pricing’s most valuable aspects. The policy is dynamic and adaptable enough to fit within the current framework, such as alongside the European carbon emissions trading system (ETS), while also being able to operate as a stand alone mechanism, as shown in the cases of Canada and Switzerland. In summary then, carbon pricing as a policy can fit alongside other important and necessary reforms, can work within the current economic system and could also be possible in a one after systemic change.

7) Removal from Carbon Reliance

The current system which we as EU citizens exist in does not allow for individuals to live a fully carbon neutral life. This reasoned case for why a carbon pricing tool would be so useful was highlighted by Suzana Carp, Board Member of New Europeans. She brought this point up within the context of humans’ natural rights: the right to life, right to clean water and the right to clean air. For Suzana, a carbon pricing tool would remove the incentives of many industries to continue emitting CO2 into the atmosphere, which eventually would, it is hoped, allow for a full removal from carbon reliance and in doing so, protecting these natural rights which are so essential for all.

“putting a price on carbon means putting a price on our environmental impact”

Andrea Salimbeni – RECORD, University of Florence and Coordinator of EUMANS environmental local initiatives

8) Can Be a Template for Further Change 

As already noted in point 6, carbon pricing alone of course does not rid the world of climate change, but it can relatively easily fit alongside current and future policies also aimed at reducing humanities less favourable impacts on the planet. This future change is of note regarding the benefits of carbon pricing in terms of such a policy’s use as a template for further innovation and progressive development. As recognised by Nick Beglinger, there are non-carbon concerns that must also be at some point involved if we are to create a cleaner and less damaging impact on the environment. Other greenhouse gases for instance, such as methane gas, which while less numerous than CO2 in the atmosphere, is far more damaging per particle and thus also of great concern. With the success of a carbon pricing policy, eventually these other non-carbon problems, such as methane can also be reduced by following the legislative pathway. 

9) Covid Has Re-established What’s Important in Life

This point was resolutely acknowledged by Stephanie Brancaforte, Executive Director of Change.org, who through the platform she helps manage has a strong idea of what people care about most. She noted the misconception that economic development is favoured by a majority above all else, with this especially not being the case since emergence of the Corona virus. Many people, suggests Stephanie, while already being strong proponents of an improved climate policy and now even more aware of the importance in their lives of family, health and nature. All of these elements can be made safe by an improved environment, which a carbon pricing policy would help provide.

10) We Need to Act Quickly

Finally, despite slight differences proposed by the events speakers between the best and most effective ways carbon pricing could be legislated, all could agree on one point in particular - the urgent need to act. While politicians and the medias focus has shifted this year to more imminent concerns, the threat of climate change lingers in the background and only becomes worse as inaction remains. With experts suggesting the economic impact and loss of human lives could dwarf that of the Corona pandemic we are currently living through, there is no time better than now to start acting and put in place legislation such as a tax on carbon emissions which can make a hopefully long-lasting positive impact on not just the EU’s, but also the worlds economy, society and natural environment. 

Finally, a big thank you once again to all our speakers and to everyone who attended our events. You can watch a recap of the entire HEY EU, TAX CO2 digital marathon below.

Full list of speakers and the other events that took place can be found on the HEY EU, Tax CO2 official page. 

Remember: every European citizens can ask for a carbon pricing in the European Union. Just take 2-minute to sign and get others to sign on the official website stopglobalwarming.eu. With 1-million signatures we can make this possible!