A report I wrote (as secretariat) on carbon pricing is out today. A few thoughts from me: 1. "of course carbon taxes are the right idea in principle, but they are politically hard" is the view of many I have spoken to. This report is based on public opinion/consent https://twitter.com/zeroc_official/status/1277519439685132288
2. What is that opinion? First, people still care about the environment a lot. They are even willing to see a somewhat slower recovery if it's environmentally friendly (though they still don't know what net zero is or what it will mean.)
3. Can they support carbon pricing? Yes, but on conditions: it needs to be fair (everyone needs to be paying their share, including businesses, and it should drive other countries to follow suit); 4. There need to be credible, affordable alternatives
5. A lot of people also expect taxes to have to go up - environmental charges are, to them, a way of killing two birds with one stone;
6. On the policy, there is a potential roadmap - which we set out - which can give people and investors certainty, allow them to adjust their behaviour, and provide funding for investment in technology (or even general revenue). Trade mechanisms can protect industry.
7. By 2030, we can have a simple, transparent system. It would be vastly preferable to the endless charges we heap onto electricity that most people don't know about - a policy that other countries have, sensibly, avoided
8. None of this negates the need for investment, particularly before a charge is introduced. But it is a large part of a clear net zero roadmap.
These are interim recommendations, and people will have good thoughts about why they need to change. Look forward to hearing them.
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