widthAs for a pleasant trip: Olaf Schultz Fly to Venice, where the Minister of Finance meets with colleagues from 20 large industrialized countries and emerging countries (G 20). Getting up early is worth it. The SPD candidate for prime minister left Berlin to escape the rain and public opinion polls, and dived into one of the most beautiful cities in the world under the bright sunshine. Not only that, but Scholz also hopes to succeed in his past efforts and gain support for projects that put the world’s tax system on two new pillars. This is a big project he has been working on for three years. It is almost certain that the new regulations will be confirmed in the communiqué on Saturday, as 131 countries have already supported reforms at the work level, including at least all G20 countries.
German politicians want to take advantage of this momentum. He wants to transfer this momentum from taxation policy to a completely different area-climate protection. At the G-20 meeting, the Germans urged that we should also find a common solution here and carry out multilateral cooperation on a global scale, so that not every country will go its own way. His concern is that if the government increases the cost of the country’s greenhouse gas carbon dioxide emissions, this will also affect domestic producers. Those who are ambitious in the sense of mankind must worry that climate-friendly manufactured products will be imported into their countries and domestic industries will migrate-this is called “carbon leakage” by experts. In order to prevent this development, economists have been considering adjusting the carbon dioxide boundary for some time, especially at the political level. The European Commission is studying such a concept.
The German politician warned in Venice that this border adjustment system should be used to confront each other. “We must now consider how to coordinate our national carbon dioxide policy,” Scholz warned. “We don’t have a lot of time, but we still have some time—one or two years—to find a solution.” It must be done like a minimum tax.
Uniform minimum price for carbon dioxide emissions
American Economist William Nordhaus It has been suggested in 2015 that countries affected by climate should unite to form a club and set a unified minimum price for carbon dioxide emissions. The German Minister adopted this method. “The club members are developing a joint roadmap that contains milestones that can compare the carbon dioxide balance and the existing carbon dioxide price,” said a key issues document for his company. “In the medium and long term, they strive to achieve comparable (lowest) prices for greenhouse gas emissions and coordinate their protection of carbon leakage.” When trading with third countries, club members should consider climate-related aspects as much as possible. , But must abide by the rules of the World Trade Organization.
Every Tuesday
French Finance Minister Bruno Le Maire helped the Germans. He bluntly favors a realistic approach. The uniform price of CO2 emissions cannot currently be enforced. However, a lower limit can be drawn. This may be a good starting point for the G20. U.S. Treasury Secretary Janet Yellen also advocated specific measures to protect the climate, but did not want to be constrained by the lowest price of carbon dioxide. In Venice, she only said that in order to achieve climate neutrality by the middle of this century, the G20 needs a lot of state and private investment.
Climate clubs and carbon dioxide border adjustments have the ability to replace minimum taxes and shape conferences in industrialized and emerging countries in the coming years. Whether Schultz can participate in leadership positions will be decided after the September federal election. At some point, the best break of the campaign was over.
