Carbon-energy tax and sustainable development

In 1992 the European Commission made a proposal for a carbon-energy tax to be introduced in Member States of the European Union (EU). So far, this proposal for a coordinated international response to the problem of global warming has met with a great deal of unwillingness among the Member States. During the first half of 1994 the Greek Chairmanship of the European Union will make another attempt to reach consensus. There does not seem to be much hope, however, that European countries will consent in the introduction of a EU-wide tax on carbon and energy. The Dutch government, in the mean time, has announced to introduce an energy tax for small users in 1995. In this paper InZet draws attention to the consequences for developing countries of the introduction of an energy tax in the industrialised countries. InZet strongly believes that instruments aimed at dealing with global environmental problems such as the greenhouse effect should have a global, integral focus. These instruments should be screened on their consequences for sustainable development in developing countries. Options for a more sustainable energy use in developing countries should form an integral part of energy policy instruments in the industrialised countries. The paper is structured as follows. In Chapter 1 an introduction to the phenomenon of global warming is given and the role of carbon/energy taxes in reducing CO2 emissions is outlined. In Chapter 2 a definition of sustainable development and the means by which it can be supported in the South are discussed. Chapter 3 provides a description of various carbon/energy taxes, and in Chapter 4 the conclusions are given as well as several policy recommendations. 75 refs