APGN Climate Workshop 5
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Transcript of APGN Climate Workshop 5
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8/9/2019 APGN Climate Workshop 5
1/22
The Fallacy of energy conservation
and carbon reduction
-A Critique on Taiwans National
Plan of Energy Tax and EmissionTrading
Chia-Wei Chao ()
Coordinator of Climate and Energy PolicyGreen Citizen Action Alliance
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8/9/2019 APGN Climate Workshop 5
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Outline
Carbon Flow within Asia and Taiwan
Delusion of carbon trading
The Energy Tax in Peril Conclusion
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The Trend of Total CO2 Emissions from the Consumption of Energy among
Primary Asia & Oceania emitters
The rate of emissions growth in the AP
region is much higher than the world
average (230% VS 140%)
Only Japan and New Zealand have
achieved a stable state.
The rate of increase in Taiwan ranks 4th
among primary emitters.
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Carbon Debt or Carbon LoanEmission (kt) Footprint (kt) Ratio
Hong Kong 3.89E+04 1.03E+05 2.65
New Zealand 3.07E+04 3.85E+04 1.25
Japan 1.31E+06 1.60E+06 1.22
Korea, South 4.94E+05 5.11E+05 1.03
Australia 3.41E+05 3.34E+05 0.98
India 1.36E+06 1.26E+06 0.93
Indonesia 3.21E+05 2.97E+05 0.93
Taiwan 2.58E+05 2.01E+05 0.78
China 5.10E+06 3.95E+06 0.77
Thailand 2.68E+05 2.02E+05 0.75
Malaysia
1.74E+05 1.06E+05 0.61
United Kingdom 5.55E+05 8.08E+05 1.46
USA 5.80E+06 6.50E+06 1.12
Adapted from Davis and Caldeira (2010) Consumption-based accounting of CO2 emissions PNAS
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8/9/2019 APGN Climate Workshop 5
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The Pledge of Taiwan Government (1)
Emission Reduction Targets :
- 2020 : to the 2005 level
- 2025 : to the 2000 level
- 2050: 50% below 2000 level
Renewable energy Promotion Target :
- 15% of the installed capacity by 2025 (8 % in
2007)
Energy Efficiency Target- 2025: Reduce Energy Intensity to 50% below
2005 level
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The Pledge of Taiwan Government (2)
Energy
EfficiencyNatural Gas
Nuclear Power
Carbon Credit
Other Measure
Government: There is no
way to cut carbon
emission !
The Development Projects
from Energy Intensive
Industries
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Delusion of carbon trading
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Emission Trading Scheme in Taiwan
Stage I Stage II Stage III
Cap
and
Trade
Emission
Performance
Standards and
offset
voluntary
inventory
registering and
reduction
mandatory
inventory auditing,
registering and
voluntary reduction
SpecificEmission
Source
Existing and NewEmission Source
Allowance allocatedto Emission SourceObject VoluntaryAction
Offset Pledge
during EIA
review
2. Foreign Certified Credit- Voluntary ETS
-- CDM
1. Domestic Carbon Credit- Early Action Certification
- Domestic Offset Project
Credit- Domestic Offset Project
- CDM
- Credit certified by post-
Kyoto Scheme
Allowance OffsetCarbon Neutrality
Before
GHGs Reduction Bill (Draft )
Purchase Offsets
when EPS cant
be met
After 2020
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The Controversies
Beyond the Can we trade the sky argument
Carbon Trading in Taiwan = greenwashing !
The role of ETS in the overall GHG policy
The Devil is in the details The defects of ETS
proposal
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Carbon Trading in Taiwan
= Greenwashing by Government
The Carbon Oligopoly
Four Companies (Taipower, Formosa Plastic, China
Petroleum, China Steel) emit over 85% of Taiwans CO2
emissions.
Reforming energy and industrial policies reduce emissionsmore effectively and maximize co-benefits
Petroleum exports are 40% greater than domestic
consumption
Substantial reductions will only occur after 2020
Dont wait for the invisible hand.
We need direct policy intervention!
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The Devil is in the details
Free Allocation 85% of allowances are allocated by grandfathering
Loose Offset
50% of offset credit can be purchased from foreign countries.
Early Actions bring Hot-Air
Energy Intensive Industries claim 4 MT CO2 was reduced
voluntarily from 2004 to 2008.
Electronics Industry claims there will be 24 MT CO2-eq in
reductions from 2006 to 2010.
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Energy Tax in Peril
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Why Taiwan needs an Energy Tax
ENERGY SUBSIDIES BY FUEL IN NON-OECD COUNTRIES, 2007
Taiwan
Billion USD
Adapted from THE GLOBAL SUBSIDIES INITIATIVE, Achieving the G-20 Call to Phase
Out Subsidies to Fossil Fuels, POLICYBrief, October 2009,
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Why Taiwan needs an Energy TaxEnergy Intensity (BTU/USD)
Energy per Capita (TOE/person)
0.240.140.27Sri Lanka
0.310.190.35Philippines
0.350.210.39Vietnam
0.380.230.43India0.470.280.53Indonesia
0.790.480.88Mongolia
1.330.811.48China
1.340.811.50Thailand
2.191.332.45Malaysia
3.652.214.08Hong Kong
3.982.414.45Japan
4.512.735.04Korea,
4.692.845.24Taiwan
4.842.935.41New Zealand
6.664.047.44Australia
11.366.8912.70Singapore
x A&Px World2007
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Unfortunate fate of the Energy Tax
The First National Conference on Energy (1997) : Reviewingthe defects of Energy-Related Fees and Taxation.
Since 2005 there has been a consensus on Energy Tax
expressed in national conferences on the environment, energy,
or economic development.
There were three draft bills proposed in the Legislative Yuan in
2006.
Presidential Candidates from DPP and KMT all pledged to
promote an energy tax in 2008.
The Tax Reform Commission suggested instituting an EnergyTax from 2011.
However the Executive Yuan declared the real energy and
carbon tax belongs to long-term policy.
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Framework of Green Tax Reform
Energy & Environmental Tax
Energy Tax Environmental Tax
GasolineDiesel
Fuel Oil
Kerosene
LPG
NuclearPower
CO2 Air
pollution
Water
pollution
Ocean
pollution
Soil &
Groundwater
NOx
SOx
VOC
Coal
Natural Gas
Gasoline
DieselFuel Oil
Kerosene
LPG
Fee becomes a
Tax
750NTD/ton CO2
Increase to
Average Price of
Japan and Korea
Treat Nuclear
as Natural Gas
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Effect (1)
Increase RatioPrice (NTD)
18%3.05(per kWh)Electricity-
Household
26%2.30(per kWh)Electricity- Industry
100%36 (per L)Diesel
80%40 (per L)Gasoline
Tenth year of Taxation1. Price
2. GHG mitigation and Energy Conservation
46 Million TonsCO2 Mitigation
> 9 Billion LitersEnergy Conservation
Comparing to BAU
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Effect (2)
Social Equality- Subsidy for the poor will increase 2.2 billion NTD
- Tax Burden on the working Class will decrease 200
billion NTD
Industrial Structure
- Negative Impact : LPG Supply, Petrochemical, OilRefinery, Textile, Fishery
Generating Co-benefit of GHG mitigation
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Controversies
Energy & Carbon Tax VS Green Tax Reform
Carbon Tax rate
- Industrial Group : 400 NTD/Ton CO2
Should we tax Nuclear Energy- Government prefers to exempt nuke from
taxation
Revenue distributed to Industry
- Government plans to use revenues to subsidizeindustry.
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Conclusion Each nation should formulate GHGs mitigation policy
according to their Carbon Flow
Exportation of energy intensive goods is the main driver
of GHG emission in Taiwan, industrial and energy
policy reform would be the real and critical answer, cap-
and-trade only distracts from our efforts on mitigation.
Promoting Green Taxation Reform combats the
environmental crisis and social inequality at same time.
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Thanks forYour Attention