Earth Equity News

China Considering Carbon Tax. By Alia McMullen, Financial Post, October 23, 2009. "China plans to announce an ambitious climate change plan at the United Nation's climate change talks in Copenhagen, Denmark, in December as it positions itself to muscle in on the growing opportunities in the clean technology sector, says Fan Gang, a monetary policy official and senior advisor to the Chinese government... Mr. Fan said the Chinese government was also 'serious' about introducing a carbon tax that would closely mimic the United States' Energy Security Trust Fund Act of 2009, a carbon tax bill that is currently in the early stages of the legislative process but faces an uphill battle and could ultimately be cast aside in favor of a cap and trade system. If passed, the bill would impose a per-unit tax on the CO2 content of fossil fuels beginning at a rate of US$15 per metric ton and increasing by 10% each year, phased in over a ten year period. The tax would also affect imports, including energy exports from Canada. Mr. Fan said China would likely implement a carbon tax whether or not the U.S. bill is passed, however he said this would likely be a slow process over a number of years." [Editor's note. CCC is very supportive of the Energy Security Trust Fund Act of 2009, introduced by Rep. John Larson, D-CT.]