An effective carbon fee
It is now 30 years since the first IPCC report was published, which shows that global CO2 emissions urgently need to be reduced in order to avoid catastrophic climate change. Since then, CO2 emissions have risen by more than 60 percent.
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This is because fossil fuels are too cheap. As long as this is the case, people will continue to use fossil fuels. The solution is a gradually increasing fee on CO2 emissions.
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The consequences:
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Polluting products will become more expensive than clean products, and this will encourage people and businesses to opt for the cheaper, clean solutions.
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CO2 emissions will decrease and fossil fuel consumption will be phased out faster.
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The big money will be diverted away from fossil fuels and channelled to climate solutions. The development and large-scale rollout of low-carbon technologies will be accelerated
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As long as there is no effective emission price at the European level, we demand a national carbon fee on all CO2 emissions as a transitional solution. This is the most cost-effective way to achieve the Belgian reduction targets, and also to promote a European solution in the long term. To give the economy time to adapt, the carbon tax must start at a low level and be increased annually.
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In the medium term, our goal is an effective carbon fee at the European level.
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Subsidies to the fossil fuel industry are equivalent to a negative carbon price. Instead of discouraging pollution, it is even rewarded, and society is burdened with the disastrous consequences. That is why we also demand that any form of subsidy for fossil fuels is stopped immediately.
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The Climate Income: A fair distribution of the revenue
The entire proceeds of the carbon fee will be distributed proportionally over the population. Every citizen receives a dividend (or Climate Income)
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The advantage of the Climate Income is that the average cost of living does not increase. People with a lower carbon footprint benefit from it; people with a higher than average carbon footprint will have to pay extra. The majority of households, especially low and middle-income earners, are better off financially as a result of this policy.
The carbon fee and dividend is a game changer, allowing for an ambitious climate policy that is also socially just and enjoys broad popular support.
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Macroeconomic studies have shown that a carbon fee and dividend has a positive impact on economic growth, employment and public health.
Ambitious emission reductions in Europe
In Europe, we must consistently continue to build on the Paris Climate Agreement and aim to reduce greenhouse gas emissions by at least 60% by 2030 compared to 1990.
A border carbon adjustment
How can we avoid that the CO2 emissions we have saved in Belgium are emitted in other countries? In order to avoid this so-called "carbon leakage", and also to protect our companies and our economy, an import tax on products from countries without a carbon fee and an export bonus for products that are exported to countries without a carbon fee must be introduced.
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This also requires cooperation at the European level.