Critics warn carbon price proposal would exacerbate energy poverty

Posted: July 28, 2021 by oldbrew in climate, Emissions, Energy, fuel poverty, government, Taxpayer
Tags: , ,

energy_cleaning_3057805No surprise that cranking up the cost of essentials is a greater burden for people on low incomes than for others. But nothing can be allowed to stand in the way of overblown climate obsessions, it seems. Carbon dioxide must be demonised no matter how tenuous the evidence against its tiny 0.04% share of the atmosphere, much of which pre-dates the modern era anyway.
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Energy poverty could be exacerbated ad prices rise under the European Commission’s proposed revamped emissions trading scheme, the European Trade Union Confederation (ETUC) has warned, with other stakeholders raising similar misgivings.

Proposals under the European Commission’s Fit for 55 package include creating a new emissions trading scheme to impose a carbon price on road transport and buildings (ETS II), says Euractiv.

But stakeholders are warning that the move would hit society’s most vulnerable.

“A €5 increase in the price at the petrol pump and €35-40 per month on household energy bills will negatively affect the income of all workers,” said Ludovic Voet, ETUC confederal secretary. He added that renewable alternatives were not yet available for households.

“Renters, commuters, small business owners and many consumers will experience higher energy and transport costs without a real opportunity to shift towards alternatives in the short-term,” agreed Silke Ernst, head of Germany’s influential metalworking trade union IG Metall.

ETUC noted that if adopted, the proposal would impact 50 million EU households living in energy poverty, with a price of €170 per tonne of CO2 resulting in annual cost hike of €373 for transport and €429 for buildings for an average household.

For comparison, the current ETS carbon price is hovering above €50. The German carbon price, imposed in 2021 is set to be at around €60 in 2026, when the EU’s proposal would come into effect.

The new carbon price for road transport and buildings is in part modelled after the German carbon price, Green MEP Jutta Paulus told EURACTIV.

Energy poverty in Europe

Europe’s energy poor, those unable to heat their homes in comfort, are estimated to number somewhere between 50 and 125 million people (UK included). The health impacts of energy poverty are widely acknowledged.

Yet addressing the issue is difficult as energy poverty differs across EU states, said Dewi Dimyati-Vliexs of 3 Counties Energy Agency (3cea), an Irish NGO combating energy poverty.

Energy poverty is most prevalent in Bulgaria, with about 30% of its citizens struggling to afford their energy bills. “Romanians and Bulgarians already pay the highest electricity prices in Europe as a consequence of the energy ETS, if accounting for purchasing power,” said Paulus.

Green MEP Paulus and a number of EU lawmakers have said they share these concerns over a carbon price on gasoline and heating fuels, given that higher prices would hit the whole of the bloc, despite its citizens having vastly different purchasing powers.

Full article here.

  1. pochas94 says:

    The trick is to force people to do things they would not otherwise do, then monetize their error.

  2. oldbrew says:

    ‘carbon price’ = money for nothing of any value offered in return.

  3. oldbrew says:

    Talking of poverty…

    Households face £200-a-year charge to fund greenhouse gas removal technology

    Warning as costs of helping the UK reach net zero emissions by 2050 are set to be passed on from industry to consumers

    29 July 2021
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  4. stpaulchuck says:

    no problem. They’ll just tax the hell out of the rest of us and gift it to the “poor” people who will just coincidentally vote for them.

  5. oldbrew says:

    UK climate policy (?) sucks…money. From the Telegraph:

    ‘Just as the spending challenge of the pandemic begins to subside, along comes another body blow to the public finances – climate change. Assuming that the Government weathers around a quarter of the costs of the projected energy transition, this would according to the OBR add a further 20 percentage points of GDP to the national debt, which would seem to leave little or nothing in the fiscal locker for the next pandemic or major economic crisis. More alarmingly still, that estimate assumes some offset from carbon taxes to help pay for the combined loss of fuel and vehicle taxes and the costs of subsidising green investment.’

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