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 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

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