European Parliament approves environmental measures that will damage economic growth

The EU has decided to give the planned economy another chance. Bureaucrats in a room in Brussels wish to decide how much carbon the European economy can produce. They then plan to sell pollution permits to producers. I seem to remember a few other countries tried this approach to the economy. I don’t remember it being a success. This measure will lead to a massive increase in electricity bills for families struggling to survive the credit crunch. It will also drive European firms out of business causing unnecessary job cuts. The European Emissions Trading Scheme needs to be put out of its misery now.

The EU is to cap the amount of carbon that can be emitted. The EU Parliament’s Environmental Committee backs plans for a 20 per cent cut in emissions by 2020 (on 1990 levels). Their plan aims to ensure 20 per cent of Europe’s energy needs are generated from renewable by 2020. Carbon permits will be created and auctioned from 2013 onwards. A proportion will remain but this will decline each year until 100 per cent of the permits are auctioned. This plan will impose massive costs on EU producers. The effect will be to endanger European firm’s ability to compete with third world producers. In some sectors jobs could be exported to less efficient third world producers whose costs are now lower than European companies. Europe could lose jobs for no environmental gain.

Some of the biggest polluters are those companies which produce our power. These companies are unlikely to absorb the costs in full themselves. Instead consumers can expect higher electricity prices to be charged. Thereby, when the EU Environmental Council Meeting occurs between the 20^th and 22^nd of October 2008, we must hope the members do not vote to increase electricity bills and force more Europeans out of work. We must hope a solution is found to deal with climate change in a sensible and constructive manner. 

Comments

[mark]

Tax free status for clean product. tax discounts for clean production, after all we all pay for the damage to this planet, in health for a start, a cleaner world is a better healthier place and you all save so much.

sorry for any spelling errors dyslexic.