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 A beginner’s guide to global warming Cutting through the carbon jargon jungle Carbon pricing is no joke... Some things you can do right now Share this newsletter!Cutting through the carbon jargon jungle  With the discussion of carbon pricing seemingly everywhere these days, all kinds of language is being tossed around that, unless you’re a scientist or policy analyst, feels like that Farside cartoon where the guy is talking to his dog and all the dog hears is ‘Blah, blah, blah, Ginger, blah, blah, blah’ (in this scenario, you’re the dog…) Here are a few useful phrases that will help you feel smarter the next time the conversation turns to some of the economic solutions to global warming. Cap and trade (aka emissions trading): Sounds like you’re willing to negotiate on your baseball paraphernalia, but it’s really a way for companies that are easily able to reduce their greenhouse gas emissions to sell credits to organizations that might need more time. Say government allots all widget manufacturers an annual emissions ‘budget’ of 100 tons, which are doled out in the form of carbon emission permits. FastInc, who have invested in upgrades and have lots of eco-friendly technologies online, will only produce 80 tons of emissions that year, but SnailCo, who need more time to green their organization, is going to blow their entire allotment in six months. FastInc can sell their excess permits to SnailCo, who will also have to look for more permits to purchase from other companies more successful at reducing their eco-footprint. The result: airborne C02 is reduced, FastInc earns more money using less energy AND selling extra permits (and passes this saving on to consumers by lowering their widget prices) and SnailCo has some flexibility in reaching targets till they can catch up. Carbon Taxes Putting a price on carbon, through a carbon tax or through a cap-and-trade system, has been widely accepted as the most effective instrument to reduce carbon dioxide - a greenhouse gas. Sweden, German, the UK and Norway - some of the strongest economies in the world – have had a price on carbon pollution for years. This price has helped them achieve absolute reductions in their greenhouse gas emissions, and successfully shifted thinking and behaviour toward the green end of the spectrum. Tax shifting: Governments tax citizens to raise money for social programs (like health care) and infrastructure (like bridges and roads). They sometimes increase taxes to discourage things (like cigarette smoking) and lower taxes to reward other things (like buying energy efficient appliances). When they are trying to influence behaviour (by, say, putting a tax on carbon emissions), but they don’t want to increase the total tax burden on the population, they have to move things around (by, say, reducing income taxes). This is tax shifting. Still confused? You’re not alone. Carbon pricing is a complicated subject. For example, carbon taxes seem to penalize rural dwellers, who rely on vehicles for transport and have no access to public transportation. Can you think of solutions to this dilemma? your comments and any other thoughts about solutions to global warming. Next >> Carbon pricing is no joke... Share this newsletter
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