Ways To Combat Carbon

Emissions
 There are two viable ways in which politicians
are able to reduce carbon emissions

1. Carbon Trading- Also Known as Cap-and-Trade

scheme.
 Governments sets caps that companies must meet.
If companies are unable to meet caps, then they
must reduce their emissions or buy another
company’s credit.

1. Carbon Tax
 Governments set a price per ton of carbon emitted.
This is then translated into a tax in electricity,
natural gas or oil.
 What is a carbon tax?
 A carbon tax is a tax on the emissions of
carbon dioxide from burning fossil fuels. Fossil
fuels include coal, oil, and gas.
 When carbon dioxide is release, it rises and
stays in the atmosphere. As a result, it traps
heat that is re-radiated from the Earth's surface
and causes global warming and changes in
climate patterns.
 The Essence of the
Carbon Tax
 The Carbon Tax would be a fair tax in which all
the companies would be taxed equally.
 The tax would be based on BTU content of the
carbons, in order to promote use of more
efficient and cleaner fuels and carbons.
 The tax could be implemented at various
stages of production and consumption.
Producers, distributors or consumers could be
targets of the tax.
 Carbon Emission
Sources
 Based on numbers given by the Environmental
Protection Agency and Energy Information
Administration, nearly 6 billion metric tons of
carbon dioxide was emitted in the United
States in 2007.

 Of this, most of the CO2 emitted comes from

transportation, followed by the industrial
sector, the residential and the commercial.
 Carbon dioxide emissions
by sector and fuel
•According to the EIA, it is projected
that at the rate we are emitting CO2,
an additional 500 million metric tons of
CO2 will be emitted by 2030.

•In the residential and commercial

sectors, electricity is the main source
of CO2 emissions.

•In the transportation and electricity

generation sectors, petroleum is the
main source of emission.

•The industrial sector is more evened

out between electricity, natural gas
and petroleum.
Carbon Dioxide Emissions
by Sector
•A more graphical
representation of CO2
emissions by sector, and
how it has changed over the
years.
 2008- A decline in
Petroleum and Coal Use
 There was a significant drop in petroleum use from 2007-2008, and a
smaller one in coal. Why was there a drop?

 The rising price of gasoline at the pumps and the start of the
recession drove people to save money and consume less.
What We Should Do Now
 The decrease in petroleum use when a barrel of
oil reached $150 is an indicator to us that
people will try to find alternatives when money
is a factor.
 The carbon tax will therefore drive people and
companies to look for other processes that will
be more efficient (because these alternative
power and fuels will be more cost-competitive).
 What we can do with the
revenue obtained?
 Most economics agree that the tax money
could be used as a rebate for income or sales
taxes.
 Others believe that it could be used to fund
environmental programs that will look for
alternative fuels and energy.
 We believe…
 France’s Carbon Tax
 On September 10, 2009, France became the first major
economy in Europe to approve a carbon tax to be effective
starting next year.
 Carbon emissions would be taxed at €17 ($25) per ton of
CO2. More expensive rates would be gradually phased in as
time progresses.
 Electricity has been exempt from this tax, based on the
grounds that 90% of France’s electricity comes from
nuclear plants.
 Both residential and industrial sectors of economy would
be taxed.
 Revenues from the carbon tax would be reimbursed
through cuts in other taxes and “green checks.”
What We Can Do to Make a
Better Carbon Tax
 Using the French Carbon Tax as an example, we
can implement additional amendments to our
bill, in order to create a carbon tax suitable to
our society and needs.
 Propose a tougher stance on the price of ton of
carbon emissions.
 Tax all aspects of industry to insure a fair tax.