by Dennis Ambler
Emissions trading schemes export jobs to developing countries.
The UK Guardian reports further loss of steel production in Teesside, North-East England and in Lincolnshire.
“Government talk of economic recovery was undermined on Friday when the country’s largest steel maker announced plans to cut 1,500 jobs in Lincolnshire and Teesside. Tata Steel, which bought the Corus business in 2007, blamed a continued slump in demand from the construction sector but also new climate change legislation for its decision.
Ben Caldecott, head of UK and EU policy at specialist investment house Climate Change Capital, said that although the carbon floor price would benefit investors in low-carbon generation, it did not give certainty because the level could be changed in future budgets. To give investors real certainty, he said, the level of tax should be guaranteed by long-term contracts.”
It is quite possible that Tata Steel may be able to claim more carbon credits under the European Emissions Trading Scheme and may also qualify for payments in India under the UN Clean Development Mechanism.
A description of a previous labor cut back by Tata Steel can be found here.
In the recent UK budget, plans for a jobs-killing carbon tax were announced:
UK Budget 2011: Carbon tax brings higher electricity bills – and nuclear windfalls
“Nuclear and renewable energy companies will scoop huge windfall profits after the government announced plans to raise £3.2bn by 2016 from a new carbon tax funded by higher electricity bills.
The chancellor announced a guaranteed minimum or “floor” price for carbon under Europe’s emissions trading scheme of £16 a tonne in 2013, rising to £30 by 2020. If the market price of carbon slumps, the Treasury’s tax will increase to make up the difference. The UK is the first country in the world to introduce such a mechanism to guarantee a price for carbon.”
The Minister for Energy and Climate Change in the UK is Mr Chris Huhne. He is a member of the UN High Level Climate Finance Panel, with, amongst others, George Soros, Lord Nicholas Stern, Ciao Koch-Weser of Deutsche Bank and French Finance Minister, Christine Lagarde, currently favourite to become the new head of the International Monetary Fund. They were tasked with finding policies to raise $100 billion per year to be used to help developing countries “cope with the impacts of human-induced Global Warming”, aka Climate Change. (more…)