Good news Monday: US emission projections drop for a fifth year running

Maybe we won't all die?

Business Insider's Joe Weisenthal highlights some good news to start the week. Projections of US CO2 emissions in 2030 at the lowest they've been in five years, according to the 2013 Annual Energy Outlook, the long-term predictions of the US Energy Information Administration.

This chart, from the EIA, shows the changes:

The administration gives five reasons for the decline in expected CO2 emissions between 2009 and 2013:

  1. Downward revisions in the economic growth outlook, which dampens energy demand growth;
  2. Lower transportation sector consumption of conventional fuels based on updated fuel economy standards, increased penetration of alternative fuels, and more modest growth in light-duty vehicle miles traveled;
  3. Generally higher energy prices, with the notable exception of natural gas, where recent and projected prices reflect the development of shale gas resources;
  4. Slower growth in electricity demand and increased use of low-carbon fuels for generation;
  5. Increased use of natural gas

Sober Look ties the news to the continued failure of the US to enact a successful cap-and-trade programme, writing:

One of the reasons for the failure of the so-called cap & trade program in the US (other than political), has to do with the fact that carbon emissions have declined on their own - without any caps. And why would a company pay for an emissions "allowance" if it can stay under the cap without it. Of course politically it made no sense to force companies to pay at the time when they were emitting materially less carbon on their own. Furthermore, there was no incentive for investors to hold these contracts because each year the long-term projections for carbon emissions in the US have declined.

That analysis is undoubtedly correct; the US cap and trade system was predicated on limiting the growth in emissions, and if they are naturally falling then clearly that limit will be moot.

That said, all it really does is highlight the appalling lack of ambition of the American climate programmes – not that the European cap-and-trade programme is doing much better. This is another argument in favour of carbon taxes versus cap-and-trade programmes; if you get the cap wrong on cap-and-trade, your programme is useless, but no matter what the value of a carbon tax, it will always have some effect.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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The 5 things the Tories aren't telling you about their manifesto

Turns out the NHS is something you really have to pay for after all. 

When Theresa May launched the Conservative 2017 manifesto, she borrowed the most popular policies from across the political spectrum. Some anti-immigrant rhetoric? Some strong action on rip-off energy firms? The message is clear - you can have it all if you vote Tory.

But can you? The respected thinktank the Institute for Fiscal Studies has now been through the manifesto with a fine tooth comb, and it turns out there are some things the Tory manifesto just doesn't mention...

1. How budgeting works

They say: "a balanced budget by the middle of the next decade"

What they don't say: The Conservatives don't talk very much about new taxes or spending commitments in the manifesto. But the IFS argues that balancing the budget "would likely require more spending cuts or tax rises even beyond the end of the next parliament."

2. How this isn't the end of austerity

They say: "We will always be guided by what matters to the ordinary, working families of this nation."

What they don't say: The manifesto does not backtrack on existing planned cuts to working-age welfare benefits. According to the IFS, these cuts will "reduce the incomes of the lowest income working age households significantly – and by more than the cuts seen since 2010".

3. Why some policies don't make a difference

They say: "The Triple Lock has worked: it is now time to set pensions on an even course."

What they don't say: The argument behind scrapping the "triple lock" on pensions is that it provides an unneccessarily generous subsidy to pensioners (including superbly wealthy ones) at the expense of the taxpayer.

However, the IFS found that the Conservatives' proposed solution - a "double lock" which rises with earnings or inflation - will cost the taxpayer just as much over the coming Parliament. After all, Brexit has caused a drop in the value of sterling, which is now causing price inflation...

4. That healthcare can't be done cheap

They say: "The next Conservative government will give the NHS the resources it needs."

What they don't say: The £8bn more promised for the NHS over the next five years is a continuation of underinvestment in the NHS. The IFS says: "Conservative plans for NHS spending look very tight indeed and may well be undeliverable."

5. Cutting immigration costs us

They say: "We will therefore establish an immigration policy that allows us to reduce and control the number of people who come to Britain from the European Union, while still allowing us to attract the skilled workers our economy needs." 

What they don't say: The Office for Budget Responsibility has already calculated that lower immigration as a result of the Brexit vote could reduce tax revenues by £6bn a year in four years' time. The IFS calculates that getting net immigration down to the tens of thousands, as the Tories pledge, could double that loss.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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