Roger Helmer MEP: What's the worst way to cut CO2 emissions?
Roger Helmer, MEP for the East Midlands, looks at some of the counter-poroductive attempts to reduce carbon emissions.
Put ten economists in a room, and they'll come up with eleven different opinions. But there's one thing they'll agree on, and that is that taxes (if we must have taxes) should be clear, fair, predictable, easy to understand, cheap to collect, and above all, non-discriminatory. They should not distort markets and economic activity.
The EU takes a different view. It wants to limit CO2 emissions by creating economic incentives. But its approaches break all the rules of good and fair taxation. Their first attempt was the EU Emissions Trading Scheme (ETS). Phase One was a huge disaster. It was vastly bureaucratic and expensive to operate. It created serious distortions between member-states. And it wholly failed to reduce emissions. Open Europe has done a couple of excellent reviews of ETS's failure.
Phase Two of the ETS started at the beginning of this year, which the EU says will be much better. But they've been saying that about the CFP for thirty years, so don't hold your breath.
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