Transcript Paper 26-PPS-Estrada

Global CO2 Tax Surcharge
Iñaki Bilbao Estrada
ENDESA Research Chair “Tax and climate change”
CONTRIBUTION TO INTERNATIONAL FUNDS,
PROGRAMMES AND ORGANISATIONS
• REVISION OF THE MEANS OF CONTRIBUTION TO INTERNATIONAL
FUNDS, PROGRAMMES AND ORGANISATIONS BY THE
INTERNATIONAL COMMUNITY IN ORDER TO ALLAY THE PROBLEMS
ASSOCIATED WITH GLOBALISATION:
- POVERTY
- ILLNESS
- CLIMATE CHANGE
- ETC.
INTERNATIONAL TAXATION
VERSUS
VOLUNTARY /OBLIGATORY CONTRIBUTIONS
PROPOSAL OF GLOBAL TAXES
• the tax on monetary transactions or Tobin Tax
• the tax on airline travel,
• the Bit Tax
• “charges for the use of global commons” or
“user fees for global commons”
GLOBAL TAXES: RESISTANCE TO
THE INTRODUCTION
• supposed attack on the national sovereignty of
states that it represents.
– no taxation without representation , or rule of
law .
• fear of the loss of hegemony
• lack of confidence in the existing organizations,
• fear of creation of some kind of world government
GLOBAL TAXES: SOLUTIONS
• revising the concept of tax and cession of
national sovereignty to an international
organisation.
• constitutional texts: procedures necessary for
the ceding of sovereignty associated with the
signing of international treaties
CLIMATE CHANGE
• The combating of climate change constitutes one such
global obligation that reaches beyond national
boundaries to the collective institutions of the
international community, and one in which the principle
of solidarity should prevail.
• In light of the inefficiency of unilateral national policies,
and the grave risks for humanity associated with
climate change, a major international accord is needed
to guarantee environmental protection.
INTERNATIONAL TAXATION AND CLIMATE
CHANGE: PROPOSALS AND EXPERIENCES
• DALY-CORREA OPEC ECOTAX
• A REDUCED RATE GLOBAL CO2:
– Conference on Climate Change in Bali in December
2007
– proposal of the Swiss minister Moritz Leuenberger to
the twelfth conference of the Parties to the United
Nations Conference on Climate Change held in Nairobi
in 2006.
• SHARE OF THE PROCEEDS FROM PROJECT
ACTIVITIES UNDER THE CDM (international tax/fee)
GLOBAL CO2 TAXES:
UNSUCCESSFUL ATTEMPTS
• Kyoto Protocol Negotiations: global CO2 tax
• EU carbon tax
GLOBAL CO2 TAXES: TWO TYPES
• FUNCTIONS:
– reduction of greenhouse gas emissions
– generate income for programmes, funds and
international organisations dedicated to
combating climate change
GLOBAL CO2 TAX SURCHARGE
• GLOBAL CO2 TAX SURCHARGE AT A REDUCED
RATE
– FUNCTION: INCOME FOR FINANCING COMBAT
OF CLIMATE CHANGE
– COMPATIBILITY WITH EMISSION TRADING
SCHEME
– TAKING ADVANTAGE OF A PRE-EXISTING TAX
STRUCTURE, USING THE TAX BASE AND TAX
RATE
GLOBAL CO2 TAX SURCHARGE
• TAX COLLECTOR
– INTERNATIONAL ORGANIZATION:
• ADVANTAGE: NO MORE VOLUNTARY
CONTRIBUTION
• PROBLEMS: TIME AND COST ADM.
STRUCTURE
– MEMBER STATES
• ADVANTAGE: NO ADMINISTRATIVE
STRUCTURE
• PROBLEMS: SIMILAR TO VOLUNTARY
CONTRIBUTION
GLOBAL CO2 TAX SURCHARGE
• TAXABLE TRANSACTIONS:
– TAXATION OF DIFFERENT FORMS OF
ENERGY ACCORDING TO THEIR CONTENT
AND THE CO2 EMITTED BY THEIR USE
– EXEMPTIONS TO AVOID REGRESSIVENESS
• TAXPAYERS
– TAXPAYERS OF ENERGY TAXES IN THE
MEMBER STATES
GLOBAL CO2 TAX SURCHARGE
• TAX RATE
– SAME TAX RATE OR
– DIFFERENTIATED RATES ACCORDING TO
EITHER THE DEGREE OF DEVELOPMENT
OF THE COUNTRY IN QUESTION, OR THE
DEGREE OF RESPONSIBILITY FOR
CLIMATE CHANGE
GLOBAL CO2 TAX SURCHARGE
• INCOMES
– SPLIT BETWEEN THE MEMBER STATES
AND THE INTERNATIONAL ORGANISATION
CONCERNED?
• REDISTRIBUTION OF INCOMES AND
EFFECTIVE CONTROL OF THE ENDS OF THE
FUNDING
GLOBAL CO2 TAX SURCHARGE
• ESTABLISHMENT OF MEASURES ENSURING
COMPLIANCE WITH TREATY OBLIGATIONS:
– IMPOSITION OF THE TAX SURCHARGE
– TRANSFER OF FUNDS
THANK YOU