The Europeans move forward with Carbon Taxes and Costly Carbon Dioxide Capture Facilities

Posted by PITHOCRATES - February 25th, 2012

Week in Review

To save the climate the DECC plans to kill the trees.  And economies (see Government files plans to build carbon capture plants by Karolin Schaps and Gerard Wynn posted 2/24/2012 on Reuters).

Calling for proposals for a wide range of engineering projects for CCS, including construction of a power plant, gas storage and pipelines, the Department for Energy and Climate Change’s (DECC) notice of contract was published in the European Union’s official journal.

“DECC’s current intention is for the projects to start demonstrating the carbon dioxide capture, transport and storage by 2016-2020,” the document said.

Interestingly, carbon dioxide (CO2) is what makes the trees grow.  And pretty much anything green that grows.  So as they pull this CO2 out of the atmosphere the trees will have less CO2 to breathe than they have now.  Poor trees.  Even the people that are supposedly trying to protect them are killing them.

The government cancelled plans to fund a CCS demonstration project in October as costs spiralled higher than expected, leaving CCS developers concerned about where the 1 billion pounds ($1.59 billion) set aside by the government for a CCS pilot project would end up…

The European Union plans to raise money soon through the sale of 300 million carbon permits called EU Allowances (EUAs) to fund CCS or renewable energy projects through its New Entrant Reserve 300 (NER300) programme…

DECC also said in the notice document that it expected CCS projects could be built without government support from the early 2020s onwards as its power market reform proposals to reward low-carbon electricity production will allow CCS to compete with other technologies. ($1 = 0.6306 British pounds).

First the government will support them by taxing everyone.  Then the market will fund these by taxing businesses (by making them buy carbon permits allowing them to emit carbon which will be nothing more than carbon taxes).  And raising prices for everyone that buys from these businesses.  But will this happen in China?  India?  Brazil?  Or any of the other export countries?  Probably not.  Meaning their trees won’t be the only thing they’ll be killing.  They’ll be killing their economies, too.

So if they’re going to kill their trees and their economies why are they doing it?  I refer you to the European sovereign debt crisis.  These governments need lots of money to support their burgeoning social democracies.  And they can’t see anything beyond these new taxes they hope to collect.  And I say ‘hope’ because the resulting fall in economic activity from these new taxes will decline tax revenue overall.  Giving them nowhere near what they hope to collect in the end.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , ,

Comments are closed.

Blog Home