Thread by @BiIndia

‘There should be a price on #carbon,’ says an expert pushing for policies to combat #climatechange - by @preeti_msoni

@ETC_energy @iyer_sriram #LordAdairTurner

businessinsider.in/policy/economy…

@preeti_msoni @ETC_energy @iyer_sriram A #carbon price is a fee imposed by the #Government on carbon to reduce carbon emissions. The idea behind carbon pricing is to encourage lower-carbon behaviour and to attract investments into renewable energy by making polluting production processes more expensive.

@ETC_energy

@preeti_msoni @ETC_energy @iyer_sriram With a #carbon pricing policy in place, countries have seen a 2% fall per year between 2007 and 2017. Whereas, countries without carbon pricing have witnessed a 3% increase in carbon emissions, according to a latest study by the World Economic Forum (@Davos).

@ETC_energy

@preeti_msoni @ETC_energy @iyer_sriram @Davos “#Carbon price is a public policy but it is a public policy that says all that the government does is set the carbon price,” #LordAdairTurner, who heads the Energy Transitions Commission (@ETC_energy) told Business Insider.

@iyer_sriram

@preeti_msoni @ETC_energy @iyer_sriram @Davos It can be either a tax on products and services based on their #carbon intensity or a quota system setting a cap on permissible emissions in the country or region and allowing companies to trade the right to emit carbon.

@ETC_energy @iyer_sriram

@preeti_msoni @ETC_energy @iyer_sriram @Davos When different countries have different tax on emissions, it may make companies in some countries less competitive than others. It is a significant challenge in a globalised economy.

#Carbon @ETC_energy @iyer_sriram

@preeti_msoni @ETC_energy @iyer_sriram @Davos For example, if #India charges more per unit of carbon emission compared to #China, the cost of steel from India would be more, and therefore less attractive to international buyers.

#Carbon @ETC_energy @iyer_sriram

@preeti_msoni @ETC_energy @iyer_sriram @Davos However, Turner has a way around it⁠— border adjustments. “I am going to charge a tariff with the border to reflect the fact that there’s a carbon price. Now, that’s not the ideal way to go, that’s second best,” he said.

#carbon @ETC_energy @iyer_sriram

@preeti_msoni @ETC_energy @iyer_sriram @Davos “The ideal way — and I think there will be debates about this in the big conference next year in Glasgow — is if we can get some international agreements at least in these traded sectors of the economy to have a similar #carbon price in different countries,” Lord Turner said.