China proposes introducing a carbon tax

The developing world takes the lead in fighting climate change.

There have been growing murmurs from China that the country may be getting serious about tackling climate change, and yesterday Xinhua News Agency announced that:

 

 

The news follows on from the Chinese government's promise earlier this month to do "whatever it takes" to cap coal use in the country. The official — albeit non-binding — target is now for coal consumption to peak at 4 billion tonnes in 2015.

The full Xinhua report on the carbon tax is thin on details, but points to an earlier report from the Ministry of Finance which suggested "levying a carbon tax in 2012 at 10 yuan [£1.05] per tonne of carbon dioxide, as well as recommended increasing the tax to 50 yuan [£5.27] per tonne by 2020."

The New York Times' Vikas Bajaj notes that:

China’s plan will not make a serious dent in global warming, though the tax may still have some beneficial impact within the country, where air pollution is a serious problem. A paper from the Chinese Academy for Environmental Planning suggests that a small tax could still raise revenue and provide an incentive to reduce emissions, bolstering China’s renewable energy industry.

As much as many in the West have used the inaction of China as an excuse not to do anything about climate change ourselves, that logic has a corollary. China is such a massive nation that it is starting to be in its own interest to break the collective action problem which has plagued environmental causes forever. Its problems are compounded by the fact that not only is it heavily reliant on fossil fuels, but it uses those fuels in the most polluting manner possible. A glance at recent stories about smog in Beijing should reveal why the government is so concerned about reducing pollution.

The real choice the nation is faced with is whether to do that by following the Western path, of replacing polluting fossil fuels with cleaner ones, or skip that stage altogether and move straight to renewables. That move would be reminiscent of the way that many developing nations, particularly in Africa, have skipped wired communications infrastructure entirely and moved straight to mobile phones. It has its disadvantages, of course — primarily speed and cost — but also offers a huge prize at the end of the transition: if China can become a genuine world leader in renewable technology, it would likely have the 21st century sewn-up for good.

If that is the aim, this carbon tax will only be a stepping-stone on the journey. For it to truly offset the cost of pollution (and be an externality tax, rather than just a minor penalty for emitting carbon), it would have to be set in the order of £50-£100 a tonne. But if China starts to lead the way in fighting climate change, it will make it significantly harder for the developed world to carry on abdicating its responsibility.

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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New Digital Editor: Serena Kutchinsky

The New Statesman appoints Serena Kutchinsky as Digital Editor.

Serena Kutchinsky is to join the New Statesman as digital editor in September. She will lead the expansion of the New Statesman across a variety of digital platforms.

Serena has over a decade of experience working in digital media and is currently the digital editor of Newsweek Europe. Since she joined the title, traffic to the website has increased by almost 250 per cent. Previously, Serena was the digital editor of Prospect magazine and also the assistant digital editor of the Sunday Times - part of the team which launched the Sunday Times website and tablet editions.

Jason Cowley, New Statesman editor, said: “Serena joins us at a great time for the New Statesman, and, building on the excellent work of recent years, she has just the skills and experience we need to help lead the next stage of our expansion as a print-digital hybrid.”

Serena Kutchinsky said: “I am delighted to be joining the New Statesman team and to have the opportunity to drive forward its digital strategy. The website is already established as the home of free-thinking journalism online in the UK and I look forward to leading our expansion and growing the global readership of this historic title.

In June, the New Statesman website recorded record traffic figures when more than four million unique users read more than 27 million pages. The circulation of the weekly magazine is growing steadily and now stands at 33,400, the highest it has been since the early 1980s.