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Asia 2050: A Pan-Asian

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Carbon Pricing

Proper carbon pricing will unlock sufficient money to pay for a Pan-Asian Energy Infrastructure.

China has called for carbon taxes ofUS$14 per tonne by 2010 rising to $28 per tonne by 2030 . Santos,

a major Australian natural gas producer, believes carbon prices of US$17-26 will create a shift ininvestment and consumption toward cleaner burning natural gas and away from coal. French PresidentNicholas Sarkozy has called for a $23 per tonne carbon tax.

Applied to Asian 2006 carbon emissions of 9,522 metric tonnes, $20 per tonne would raise $190billion per year.

This would be more than enough to fund the annual ongoing investment in a Pan-Asian EnergyInfrastructure. It would also fund research and development into the upstream technologies to create thelow emission energy the system would carry.

Globally, a $20 per tonne carbon tax would raise nearly US$600 billion a year. That's twice the annualamount needed to fund the estimated global expenditures of $300 billion needed globally to fight climatechange.

In short: climate change is not a technology problem. Climate change is an economic reformproblem.

In a report entitled "China Energy and C02 Emiss ions Report," China's National Development andReform Commission and the Development Research Center of the State Council recommended Chinaspend roughly US$146 billion per year between now and 2050 on low emission technologies -- orroughly 4% of 2008 GDP.

That amount could be raised by a $20 per tonne carbon tax applied to China's six billion tonnes ofcarbon emissions per year. Given that China is stil in a state of rapid economic development, the soonersuch taxes are applied with certainty and permanency, the better will be long-term price signals forappropriate investment.

In 2008, the global carbon market was valued at US$126 billion

Additional Reading:Santos wants gas-fired power: ETS submission

FACTBOX: China climate change report sets out options2008 carbon market valued at Euro 90b

"A 'closure premium(should be offered)for inefficientwritten-off coal-fire

power plants in soutEuropean countries iftheir capacities are

replaced with theimport of clean powfrom deserts.""Red Paper: An Overviof the DESERTECConcept," DESERTECFoundation

10/10/2010 DESERTEC-Australia | Clean Power Fro

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