How Europe’s new carbon tax on imported goods will change global trade

The new regulation arrives on New Year's Day.

See full article...

 

[ranthog]

There are places that need that economic help to bring their countries up to standard, such as in most of Africa, and most island based states are at the top. These are the countries with relatively weak economies and very low carbon impact on a per capita basis.

However, India would be at the end that would likely get a much smaller part of that money, so it wouldn't affect their exports a ton.

China, I would have a hard time at this point giving them anything, based on where their economy is. They pretty clearly are past the point of needing help here, and that money would be better off spent in the poorest places in the world.

(And to be clear, the answers as to who should get this money would be different a decade ago, twenty-five years ago, and fifty years ago.)

 

[ranthog]

The EU is putting their standard of living on the line for the good of the world. That's admirable of them, although I'm not sure if everyone living there agrees.

The good news is that increased cost of imports should organically encourage reusing and recycling in the EU.

More importantly, this will give importers who try to do the right thing a leg up in the market. It will also push countries that rely on these exports to push green projects in the short term where it will give their companies an advantage in the EU.

 

[ranthog]

OTOH, $2000 is the maximum allowed assets for SSI disability pay, so any of us cashing that check could lose our benefits - something the trump regime is ALL about.

With this administration, they'll likely try to direct deposit it into your account and then kick you off based on their actions.

 

[ranthog]

It simple economics, if you tax something then you make it more expensive and remove the incentive for people to do something. It’s the idea of cigarette and alcohol taxes we want people to do those less so we charge them more. Who do these regressive taxes hurt the most? The poor

No government has accountability for how money is spent. Once politicians have your money the can redirect it to various spending priorities at will. That’s the danger of giving more revenue to government. That you have to have faith a politician will keep their word.

That remains to be seen, if the regulations will stop the outsourcing of pollution. So far the regulations example carbon taxes on Volkswagen have had the effect is subsiding their competitors leading to the company in part having to downsize and shut factories in Europe. The carbon regulations have thus far pushed to de industrialize Europe and contribute to their economic woes.

I disdain the bureaucracy in Europe as an Irish citizen as to the harms it has created in perpetuating the housing affordability crises, deficit spending, the loss of good paying jobs and the other harms (unintentional?) it has done to many of its citizens. I’m also highly concerned about the IMF being forced to bail out the UK and France and with the strings that will be attached. Their governments are not sustainable.

I say give people more skin in the game, let them choose what they believe is best for their finances, environment and children.

I see this as making the affordability crisis worse for many fellow Europeans. Whom, the best and brightest will flee to lower tax, better prosperity locals. Which will contribute to the de industrialization of the continent, poverty and accelerating the economic irrelevance of Europe. What good is it to be a leader in something if no one follows, and it destroys your ability to lead? There needs to be a better balance between going green without destroying peoples livelihood.

I have far more faith in my politicians than I do in letting the billionaires have all the money and power. Not to mention I can replace the politician if I don't like them. Is it possible they redirect taxes somewhere I don't like? Sure. That happens today. That isn't a reason to throw the baby out with the bathwater.

You have to have faith in something. Trusting nothing because someone somewhere could do something bad is not the basis for a functioning society. Society runs on trust.

These regulations quite literally forcus on making sure imports do not have an advantage because of differing climate policies. There is no possible way that could logically make domestic production less competitive. It is possible these taxes do not go far enough to fix this, but then the solution is more taxes.

I'd like to point out that the US with very little regulation of these things also has a housing crisis. While this was not entirely created by the financial crisis, it has been far worse and accelerating since the financial crisis... which was a clear lack of necessary government regulation. At this point in time it is becoming pretty obvious that government is going to be the only viable solution to the housing crisis. The private sector just isn't interested in solving it.


To be honest, good riddance to people like you in Europe. Maybe you'll have more room for all the highly skilled people from elsewhere that would be happy to move to Europe. Honestly, I highly doubt you'd enjoy the standard of living here in the US where you don't get things like healthcare and you get very small amounts of time off of work.

 

[ranthog]

Wrong.

You shouldn't let facts get in the way of delusions and ideology.

 

[ranthog]

Sec. 10. Powering Artificial Intelligence Data Centers. (a) For the purposes of this order, “artificial intelligence” or “AI” has the meaning set forth in 15 U.S.C. 9401(3).

(b) Within 60 days of the date of this order, the Secretary of the Interior, Secretary of Commerce, and the Secretary of Energy shall identify regions where coal-powered infrastructure is available and suitable for supporting AI data centers; assess the market, legal, and technological potential for expanding coal-based infrastructure to power data centers to meet the electricity needs of AI and high-performance computing operations; and submit a consolidated summary report with their findings and proposals to the Chair of the NEDC, the Assistant to the President for Science and Technology and the Special Advisor for AI and Crypto.

Sec. 11. Acceleration of Coal Technology. (a) The Secretary of Energy shall take all necessary actions, consistent with applicable law, to accelerate the development, deployment, and commercialization of coal technologies including, but not limited to, utilizing all available funding mechanisms to support the expansion of coal technology, including technologies that utilize coal and coal byproducts such as building materials, battery materials, carbon fiber, synthetic graphite, and printing materials, as well as updating coal feedstock for power generation and steelmaking.
(b) Within 90 days of the date of this order, the Secretary of Energy shall submit a detailed action plan to the President through the Chair of the NEDC outlining the funding mechanisms, programs, and policy actions taken to accelerate coal technology deployment.

Likely, the worst thing this will do is shove free money in the pockets of people who own coal power plants today. It could potentially play for things like necessary upgrades and the like. But with this administration, it likely will just be a wealth transfer mechanism to the rich.

But no one is going to build a new coal power plant. It just doesn't make financial sense. There is a reason why companies are still building out wind and solar despite the administration. If they build out fossil fuel plants, they'll make it a natural gas one.