WORKABLE FOSSIL FUEL EXCISE SCHEME

As of 2018, carbon pricing initiatives implemented or scheduled for implementation would cover 11 gigatons of carbon dioxide equivalent (GtCO2e), or about 20% of global GHG emissions.

However many national Carbon Tax Schemes being introduced by governments just collect a carbon tax which is being placed into their national budgets.

Any Global Emissions Trading Scheme or Fossil Fuel Carbon Excise Scheme to be successful at lowering atmospheric carbon content must, 

 

  • Collect the carbon tax from all carbon producers at the point of production.

  • The tax should not be collected from individual consumers.

  • Paid the collected tax directly to the registered Carbon Sequesters

 

However there needs to be stringent conditions in place for nations and states which want to register their indigenous forests as Carbon Sequesters which ensure the forests are nurtured and protected, and are not taken over by commercial interests at the expense of the local community who rely on them for food and income.

Furthermore it is suggested that a large portion of income from the FFCES, generated by the Indigenous Forests, for the first ten years should be utilized to either,

  • Improve living conditions of local communities

  • Fund National Projects that will assist decarbonize the communities of that nation

  • Fund Renewable Energy Projects

  • Investments in Renewable Energy or Decarbonization Projects in other nations.

 

The above will ensure a doubling of decarbonization globally.

  • The first from ending Deforestation

  • The second from approximately US$900 Billion being made available for new Renewable Energy and De-carbonization Projects each year for the next ten years.

WHERE TO IMPOSE A CARBON EXCISE

Much has been written about imposing a Carbon Tax.

However if we are looking for the most logical and easiest to manage, imposing the tax at the source, makes by far the most sense.

For example  1 barrel of oil produces 118 kg of carbon emissions. Therefore it takes 8.5 barrels of oil to make 1 ton of carbon emissions.

 

To impose a US$30/ton carbon excise on the producers would only require OPEC nations, etc, to pay a US$3.50/ barrel carbon excise.

Oil prices can fluctuate by more than US$20 in the course of any six month period. And most countries do not adjust their, at the pump petrol prices, on a daily basis. Hence to introduce a US$3.50/barrel tax in a low ebb cycle of crude prices would hardly be noticed.

Furthermore it is suggested that the tax be implemented over a 7 year period. Hence oil price would only need to be increased by 50 cents/ barrel/ year for the first 7 years of the FFCES program.

As global oil producers are producing approximately 95 million barrels/day or 34.5 billion barrels/year, this carbon tax would produce more than US$ 120 billion to be dispersed to Carbon Sequesters, without any country having to impose any new taxes. In fact the general populations of every nation would hardly even realize the new Excise on Carbon & Oil had been implemented. 

Of course this is just oil. Gas, Coal and other GHG emitting fuels should be subject to the same excise, over the same implementation period, with the same collection methods.

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