New Australia

A Standard 10% of Revenue from Climate Taxes

Only by having one set of rules for all regions can an agreement be reached.

NewAustralia proposes a new global climate treaty with the following key characteristics:

• Each region to derive at least 10% of revenue from climate taxes.
• Each region to cut revenue from other sources by the same amount.
• No attempt to set allowable emission caps for each nation - there will never be an agreement on this!
• No attempt to establish a global emission trading scheme.
• Sub-national regions (States, provinces, etc.) may participate.

The nuclear-armed super-powers China and India have already said they will never accept an inherently discriminatory 'Global ETS' so there is not point persuing this type of scheme.

The New Kyoto Protocol [DRAFT]

• Figures in [square brackets] are indicative only.
• In Australia, raising 10% of tax from climate-taxes would yield a carbon price of about $50 / tonne CO₂ if a carbon tax raised 80% of climate tax revenue. (See Tax.xls)

Clause	Notes
1.0 Definitions A region is a nation or 'administrative zones'. 'Administrative zones' are sub-national regions (states, counties, provinces, etc. that raise more than the agreed % of all revenue raised in that region.	US States or Chinese Provinces could make this treaty work without their national government's participation. Whether Taiwan is a nation or an 'administrative zone' is not considered here.
2.0 Actions by Participating Regions a) Adjust their revenue system such that a net [10]% of all revenue raised in the region by any level of government will be raised via 4.0 Approved Climate Taxes OR Ensure that net taxes on specified pollutants exceed levels set in 5.0 Specified Climate Tax Levels. b) Adjust their tax system such that no taxes are raised on land or income from land use where the land is managed to sequester greenhouse gasses in a manner set out in 6.0 Untaxed Land Rules.	In most regions more than 10% of revenue comes from taxing labour, income or the sale of goods and services. This revenue can be shifted to climate taxes. A small number of regions have insufficient emissions to raise 10% of revenue from climate taxes.
3.0 Revenue Neutrality a) Any new Climate Taxes should be made fully revenue neutral by reducing taxes on labour, income, goods and services. b) Alternatively the revenue from Climate Taxes should be returned to the citizens of the region in the form of a flat dividend.	Revenue neutral tax changes cannot harm a regions competitiveness - so it doesn't matter who goes first. Not use of the word 'should'. This clause is not binding.
4.0 Approved Climate Taxes a) Any tax on emissions of greenhouse gasses (carbon, methane, nitrous oxide & chlorofluorocarbons). b) Sale of emission permits. c) Taxes on logging or other land uses which increase releases of greenhouse gasses or limit the ability of the land to sequester greenhouse gasses.	This provides maximum freedom for the regions to solve the problem.
5.0 Specified Climate Tax Levels a) Anthropogenic Carbon Tax: [$A60.00] / tonne CO2. b) Anthropogenic Methane Tax: [$___] / tonne. c) Anthropogenic Nitrous Oxide: [$___] / tonne CO2. d) Anthropogenic Chlorofluorocarbons: [$___] / tonne CO2. e) Logging tax (native forest): [$___] / tonne extracted timber. f) Logging tax (plantation forest): [$___] / tonne extracted timber. ... n) [Other taxation by agreement].	These tax levels may be used as an alternative to the specified % of revenue from 4.0 Approved Climate Taxes. Non-Anthropogenic emissions (volcanoes, brushfires, etc. are not taxed). .
6.0 Untaxed Land Rules Land that is being managed in a way that helps reduce climate change should be exempt from land taxation. Rules should be set to encourage: a) More tree cover / hectare. b) Preservation of existing trees (perhaps 'tree cover' would be tradable?) . c) 'Carbon Farming'. d) Use of 'biochar' or similar. e) Encouragement of other land use changes that foster carbon sequestration and reduce methane emissions.	This would be expanded during negotiation. However, there would be one set of rules for all regions.
7.0 Validation Committee a) There will be a Validation Committee to determine compliance or a region with the rules of this agreement. b) The first [100] regions to implement measures under this agreement may appoint a representative to the committee. c) The committee will adjudicate on complaints made to it as to the compliance or otherwise of regions. d) A [2/3] majority of the committee may deem a region to be non-compliant.	This creates an incentive to join & implement early.
8.0 Enforcement After regions representing [70]% of the world's 2000 population have implemented measures under this agreement the compliant regions shall within 30 days prohibit: a) Any businesses from operating in a non-compliant region or having dealings with a business that does. b) Any businesses selling a product or service produced wholey or in part by a business operating in a non-compliant region or having dealings with a business that does. c) Any businesses transaction from using the currency of a mostly non-compliant region. d) Any commercial flights to or from a non-compliant region.	Even if regions do not actually enforce this a risk to business is created that will cause them to avoid regions likely to not comply with the agreement. Note that if a majority of sub-national regions such as states in a nation are compliant the nation's currency would be unaffected.

Support

Joseph E. Stiglitz (Columbia University Professor, 2001 Nobel Prize for economics)

13^th Jan 2010: "Perhaps it is time to try another approach: a commitment by each country to raise the price of emissions (whether through a carbon tax or emissions caps) to an agreed level, say, $US80 a tonne...". See full SMH article, also his web site: Joseph E. Stiglitz.

Dr James Hansen, NASA Climate Scientist

12^th Jan 2010: "You are choosing the path focused on corporate greed," climate scientist James Hansen has told carbon traders in a open letter which he and climate activists attempted to deliver to a carbon trading conference in New York today.". full article.

Carbon Tax Center

19^th Dec 2009: "Report from Copenhagen: Forget carbon targets, just set a price". Carbon Tax Center.

Info

World Carbon Emissions

SMH Interactive map of carbon emissions. Note that on the 'total emissions' map there are only three significant players.

News

COP17 Cop out?

28^th Nov 2011: Durban UN Climate Change Conference (COP17) not looking good as emphasis still on carbon trading and working out who can emit what instead of agreeing on a uniform carbon tax level. more...

Nobel winner: Tax carbon

13^th Jan 2010: "Perhaps it is time to try another approach: a commitment by each country to raise the price of emissions (whether through a carbon tax or emissions caps) to an agreed level, say, $US80 a tonne..." - Joseph E. Stiglitz. more...

Copenhagen fails

20^th Dec 2009: The 'Global ETS' approach at Copenhagen has predictably failed... more...

Copenhagen on the brink

12^th Dec 2009: As expected China and India are refusing to sign up to an ETS or specific targets. more...

Population & Warming

4^th Dec 2009: "Population control best way to cut emissions." more...

Hansen on Copenhagen

3^rd Dec 2009: "Outspoken US climate scientist James Hansen has announced that climate talks next week in Copenhagen must collapse if the world is to tackle global warming effectively" more...

Eco-Tax Only Option

26^th Nov 2009: A Green Tax Shift as proposed by NewAustralia is now the only option to tackle climate change given the Lib/Lab ETS cannot be strengthened without providing even more compensation.

King Coal?

8^th Nov 2009: "The 10 industries, including coal, that are responsible for 37 per cent of our emissions accounted for only 4 per cent of national production and 3 per cent of employment." more...

Nuclear Delusions

16^th Oct 2009: "The goal of the nuclear industry is to grow to 730 reactors worldwide by 2030. This would require one to be completed every 24 days, every year for the next 20 years." more...

Reforming the ETS

8^th Oct 2009: ACF: "Under the current design of the Federal Government's emissions trading scheme, individuals' voluntary efforts - like buying GreenPower, putting solar panels on roofs and installing insulation - are not being counted." more...

Serving the polluters

28^th Sep 2009: "Rudd Government an obedient servant of the big polluters". Ken Davidson article that says it all. more...

French Carbon Tax

11^nd Sep 2009: Nicolas Sarkozy has launched plans for a carbon tax to encourage industry and households to cut energy consumption. This will be a revenue-neutral tax shift as proposed by us for Australia. more...