Britannia Radio

It is slowly dawning on the Euro-madhouse that  their whole policy is 
ruinous!   One day it might possibly also dawn on them that their 
whole climate change ‘religion’ is a false God.  One can but hope!

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EUROPEAN VOICE   3.11.08
Cutting emissions 'could' reduce revenues
    By Rikard Jozwiak

Report by the European Commission argues that reduced energy 
consumption could lower governments' tax revenues and highlights risk 
of 'carbon leakage'.

A report due to be presented at a meeting of EU finance ministers 
tomorrow warns about the economic costs of the EU's proposed energy 
and climate-change package, arguing that tax revenues could fall.

In its report, seen by European Voice, the European Commission's 
Economic Policy Committee's working group states that a strong 
pursuit of the goals set out in the package, which the EU presidency 
wants agreed this year, would reduce energy consumption and, with it, 
tax revenues. It also warns that rising energy bills might result in 
stronger calls for governments to help poorer members of society, 
which, if heeded, could increase public spending.

The paper also flags up the increased risk that companies could move 
their operations abroad to avoid the restrictions imposed by 
emissions-reduction targets, a process often referred to as ‘carbon 
leakage'. The working group states that a global and comprehensive 
agreement “imposing similar CO2 price to all emitters on an 
international level” is the best way to avoid carbon leakage.  [They 
must be joking!!! Do they come from another planet? -cs] There is 
also a fear that, in the absence of a comprehensive international 
agreement, additional compliance costs under Phase 3 of the EU's 
emissions-trading scheme (ETS) could add to the chances of carbon 
leakage.

The report was placed on the agenda of the finance ministers' meeting 
at the request of Poland, which is concerned at the impact of the ETS 
on the energy market and of the climate and energy package on 
investment in the energy sector.