China's Botoxed image

Any meaningful solution designed to maintain a planet capable of supporting future generations requires broader terms of reference with GHGs the number one target in a hit list of others.

China's carbon tax options

China is aware of the possibility of a carbon tax. The world's major polluter sees any carbon tariff as an attack on its economy and right to growth. The WTO rejected China's claim that carbon tariffs breached WTO rules.

The Waxman-Markey bill reflected growing US and global sentiment on carbon reduction. "Border adjustments" would apply to goods produced in countries under conditions that ignored effective emissions reduction in order to gain a cost advantage for exports. Current and future US administrations now have this authority.

China is considering introducing a carbon tax of its own and is aware that if it has a carbon tax, under WTO, other countries cannot impose additional tariffs. Beijing claims US$1.47/tonne of carbon is realistic for China. Given China's lack of transparency and dodgy numbers, there is serious concern about China's methodology in calculating any realistic carbon tax. Beijing's recent announcement that it would accept no outside monitoring, of any domestic carbon reduction scheme that it may consider under any global agreement, only reinforced that concern.

China's US$6.6 billion Botox job

Beijing is fully aware of the effect that pollution and carbon emissions are having on China's international image and is pouring billions into reversing that image, especially in time for and during Copenhagen.

The capabilities of Xinhua, CCTV and People's Daily are being merged into an “influential and reliable” 24/7 global media giant, China's equivalent of CNN or an Al-Jazeera, and is seeking foreign expert reporting staff under the direction of the Organisation Department. The objective is to run multi lingual channels, websites and print media to present a "balanced" view of an "open, free and environmental responsible" China.

This will be a big ask for a sceptical global audience, especially when the operation will still be effectively controlled by the Central Propaganda Department.

Consumer tax

Be it a carbon tax or an ETS, the cost of consumer goods will rise affecting overall economic growth.

Business-as-usual will not be an option and personal priorities and lifestyle change will be part of the future.

A carbon tax will produce a bigger revenue stream than the GST and could fund projects determined by national guidelines and linked to a global scheme.

There are numerous possibilities ranging from direct funding, to loans and grants for carbon reduction schemes or compensation.

Consumer tax benefits?

A consumer carbon tax could motivate the return of companies that relocated manufacturing offshore. Companies currently manufacturing offshore may find a return to a "carbon friendly" environment could create an "edge" against competing products manufactured offshore exploiting lax environmental legislation and carbon emitted during manufacturing and long sea routes.