[Top News] from [REUTERS]
[Green Business]
Crispian Balmer
PARIS
Wed Dec 30, 2009 7:29am EST
French government rushes to revive carbon tax
PARIS (Reuters) - French ministers scrambled on Wednesday to rescue a carbon tax aimed at cutting energy consumption, which was annulled by the Constitutional Court just 48 hours before it was due to come into force.
France's highest court stunned President Nicolas Sarkozy's government late on Tuesday by ruling against the tax, saying there were too many loopholes benefiting major industrial polluters.
The new tax was expected to raise 1.5 billion euros ($2.15 billion) next year and the court's decision will put added pressure on the budget deficit, already forecast to come in at a high 8.5 percent of gross domestic product in 2010.
Ministers promised to present a revised text on January 20 but it could take weeks more to get the law back through parliament and badly needed cash flowing into state coffers.
"The government is going to persevere. It is a tough fight, but a worthwhile one," government spokesman Luc Chatel told LCI television. "France has to remain in the forefront of the battle to protect the environment," he added.
The carbon tax was promoted by Sarkozy as a cornerstone of his fiscal and environmental policy. It was set to come into effect on January 1, by imposing a levy on oil, gas and coal use amounting to 17 euros per ton of carbon dioxide emissions.
However, many of France's biggest industrial polluters, as well as truckers, farmers and fishing fleets, were offered generous discounts, or exempted altogether.
The government argued that many of these sectors already faced European Union curbs and should not be placed at a disadvantage to their international competitors.
The Constitutional Court objected that 93 percent of industrial carbon dioxide emissions would be exempt, saying the measure would do nothing to combat global warming and went against the spirit of fostering equality amongst tax payers.
The opposition Socialist party had long complained that the tax would unfairly penalize low earners and crowed victory.
"This is a good decision and shows once again that Sarkozy's way of doing things does not work," Socialist parliamentary party leader Jean-Marc Ayrault told France Info radio.
"They announce a reform, listen to no one and produce a poor job. It's a real mess ... now they will have to start from scratch and oversee a fiscal reform that is more ecological and does more to protect the environment."
The junior minister for trade and consumption, Herve Novelli, said the revised tax would offer fewer loopholes.
"It was perhaps shocking that the sectors given exemptions were those that polluted the most ... We will therefore need to remedy that," he told Europe 1 radio.
(Additional reporting by Laure Bretton; editing by Robin Pomeroy)
[Green Business]
Kitiphong Thaichareon
BANGKOK
Tue Dec 29, 2009 11:18am EST
Thailand sets health rules to tackle industrial row
BANGKOK (Reuters) - Thailand on Tuesday approved regulations on health and environment assessments for industrial projects, a step toward allowing suspended operations to go ahead at the world's eighth-biggest petrochemical hub.
A court has suspended 65 new plants at Map Ta Phut, Thailand's biggest industrial estate, for their owners' failure to carry out health impact assessments (HIA). The government was blamed because it had not set up a body to oversee the HIAs.
The ruling stoked concern about legal uncertainty and government competence in a country once seen as a safe haven for investment but now mired in five years of political strife.
"The cabinet has approved the draft regulations ... about guidelines to comply with environment and health impact assessments," a deputy government spokesman told reporters.
The government's move at least clarifies what companies need to do to get health impact clearance, but an independent commission to carry out the assessments has still not been set up and some companies fear this could be the main sticking point.
A panel chaired by former premier Anand Panyarachun has agreed to form that body but there are concerns about delays if parties in the dispute challenge who sits on the commission.
Analysts say the credibility of Prime Minister Abhisit Vejjajiva's embattled pro-business government and its economic revival efforts could be hurt if it fails to resolve the dispute quickly.
DELAYS COSTLY
The central bank says the suspensions could cut GDP growth by up to 0.5 percentage point next year, while an industry ministry estimate last week said a protracted legal standoff could cost as much as $18 billion.
According to the new regulations, companies building plants are now required to hold public hearings into the environmental and health impact. Local people were not previously consulted.
The court injunction followed complaints from local people and environmentalists that state agencies and ministers had failed to issue proper operating licenses at the 6.5 sq km (4,086 acre) estate in eastern Thailand. A local lobby group says some 2,000 cancer deaths were caused by pollution from the estate.
On December 2, a court allowed 11 of 76 suspended projects at Map Ta Phut to proceed, but the other 65 projects worth an estimated $8 billion remained frozen.
Last week the court allowed a venture partly owned by Siam Cement, Thailand's top industrial conglomerate, to resume operations because its license had been granted prior to the promulgation of the 2007 constitution.
Companies at the estate include top energy firm PTT, PTT Chemical and utility Glow Energy. Among the foreign companies are a Thai unit of Germany's Bayer and Australia's BlueScope Steel Ltd.
The government agreed last week to back court appeals on 19 projects it deems safe enough to resume operations, while state-controlled PTT will seek the go-ahead for its nine suspended projects, given that they, too, received operating licenses before the 2007 constitution.
(For a Q+A on the Map Ta Phut dispute:)
(Writing by Khettiya Jittapong; Editing by Martin Petty)
[Green Business]
PARIS
Tue Dec 29, 2009 4:27pm EST
Franch constitutional body rules against carbon tax
PARIS (Reuters) - France's planned carbon tax cannot be applied because it includes too many exemptions, a French government body ensuring laws are constitutional ruled on Tuesday, in an embarrassing setback for the government.
The tax on carbon-emitting products, meant to encourage consumers to save energy and use less fossil fuels, is one of President Nicolas Sarkozy's most loudly defended initiatives and was meant to come into effect on January 1, 2010.
"The exemptions included in the carbon tax run counter to the aim of fighting climate change and create inequalities with respect to public charges," the Constitutional Council said in a statement.
Prime Minister Francois Fillon said in a separate statement the cabinet would in January examine a new law taking into account the ruling.
Sarkozy has thrown his weight behind the levy, saying it would support the battle against climate change, but the plan had to be watered down extensively to appease critics.
In its ruling, the council said the law exempted some of the worst industrial polluters such as refineries and included relief for farmers and fishermen, among numerous other exemptions.
"93 percent of carbon dioxide emissions of industrial origin, other than fuel, will be totally exempt from the carbon tax," the government body said in the ruling.
The tax has caused public upheaval in France, with critics within the ruling party saying the tax would hurt poor families and people in rural areas with little public transport.
The opposition Greens broadly agreed with the principle but said the tax should be higher, while the Socialists said it would deal a further blow to consumers already struggling to cope with the economic downturn.
As a result, the system that was eventually adopted would have differentiated between urban and rural dwellers, and applied to oil, gas and coal but not to electricity.
The levy, initially set at 17 euros ($25) per tonne of carbon dioxide emissions, would have translated into a rise in the price of fuel for cars, domestic heating and factories.
(Reporting by Gerard Bon and Sophie Hardach)
[Green Business]
Crispian Balmer
PARIS
Wed Dec 30, 2009 7:29am EST
French government rushes to revive carbon tax
PARIS (Reuters) - French ministers scrambled on Wednesday to rescue a carbon tax aimed at cutting energy consumption, which was annulled by the Constitutional Court just 48 hours before it was due to come into force.
France's highest court stunned President Nicolas Sarkozy's government late on Tuesday by ruling against the tax, saying there were too many loopholes benefiting major industrial polluters.
The new tax was expected to raise 1.5 billion euros ($2.15 billion) next year and the court's decision will put added pressure on the budget deficit, already forecast to come in at a high 8.5 percent of gross domestic product in 2010.
Ministers promised to present a revised text on January 20 but it could take weeks more to get the law back through parliament and badly needed cash flowing into state coffers.
"The government is going to persevere. It is a tough fight, but a worthwhile one," government spokesman Luc Chatel told LCI television. "France has to remain in the forefront of the battle to protect the environment," he added.
The carbon tax was promoted by Sarkozy as a cornerstone of his fiscal and environmental policy. It was set to come into effect on January 1, by imposing a levy on oil, gas and coal use amounting to 17 euros per ton of carbon dioxide emissions.
However, many of France's biggest industrial polluters, as well as truckers, farmers and fishing fleets, were offered generous discounts, or exempted altogether.
The government argued that many of these sectors already faced European Union curbs and should not be placed at a disadvantage to their international competitors.
The Constitutional Court objected that 93 percent of industrial carbon dioxide emissions would be exempt, saying the measure would do nothing to combat global warming and went against the spirit of fostering equality amongst tax payers.
The opposition Socialist party had long complained that the tax would unfairly penalize low earners and crowed victory.
"This is a good decision and shows once again that Sarkozy's way of doing things does not work," Socialist parliamentary party leader Jean-Marc Ayrault told France Info radio.
"They announce a reform, listen to no one and produce a poor job. It's a real mess ... now they will have to start from scratch and oversee a fiscal reform that is more ecological and does more to protect the environment."
The junior minister for trade and consumption, Herve Novelli, said the revised tax would offer fewer loopholes.
"It was perhaps shocking that the sectors given exemptions were those that polluted the most ... We will therefore need to remedy that," he told Europe 1 radio.
(Additional reporting by Laure Bretton; editing by Robin Pomeroy)
[Green Business]
Kitiphong Thaichareon
BANGKOK
Tue Dec 29, 2009 11:18am EST
Thailand sets health rules to tackle industrial row
BANGKOK (Reuters) - Thailand on Tuesday approved regulations on health and environment assessments for industrial projects, a step toward allowing suspended operations to go ahead at the world's eighth-biggest petrochemical hub.
A court has suspended 65 new plants at Map Ta Phut, Thailand's biggest industrial estate, for their owners' failure to carry out health impact assessments (HIA). The government was blamed because it had not set up a body to oversee the HIAs.
The ruling stoked concern about legal uncertainty and government competence in a country once seen as a safe haven for investment but now mired in five years of political strife.
"The cabinet has approved the draft regulations ... about guidelines to comply with environment and health impact assessments," a deputy government spokesman told reporters.
The government's move at least clarifies what companies need to do to get health impact clearance, but an independent commission to carry out the assessments has still not been set up and some companies fear this could be the main sticking point.
A panel chaired by former premier Anand Panyarachun has agreed to form that body but there are concerns about delays if parties in the dispute challenge who sits on the commission.
Analysts say the credibility of Prime Minister Abhisit Vejjajiva's embattled pro-business government and its economic revival efforts could be hurt if it fails to resolve the dispute quickly.
DELAYS COSTLY
The central bank says the suspensions could cut GDP growth by up to 0.5 percentage point next year, while an industry ministry estimate last week said a protracted legal standoff could cost as much as $18 billion.
According to the new regulations, companies building plants are now required to hold public hearings into the environmental and health impact. Local people were not previously consulted.
The court injunction followed complaints from local people and environmentalists that state agencies and ministers had failed to issue proper operating licenses at the 6.5 sq km (4,086 acre) estate in eastern Thailand. A local lobby group says some 2,000 cancer deaths were caused by pollution from the estate.
On December 2, a court allowed 11 of 76 suspended projects at Map Ta Phut to proceed, but the other 65 projects worth an estimated $8 billion remained frozen.
Last week the court allowed a venture partly owned by Siam Cement, Thailand's top industrial conglomerate, to resume operations because its license had been granted prior to the promulgation of the 2007 constitution.
Companies at the estate include top energy firm PTT, PTT Chemical and utility Glow Energy. Among the foreign companies are a Thai unit of Germany's Bayer and Australia's BlueScope Steel Ltd.
The government agreed last week to back court appeals on 19 projects it deems safe enough to resume operations, while state-controlled PTT will seek the go-ahead for its nine suspended projects, given that they, too, received operating licenses before the 2007 constitution.
(For a Q+A on the Map Ta Phut dispute:)
(Writing by Khettiya Jittapong; Editing by Martin Petty)
[Green Business]
PARIS
Tue Dec 29, 2009 4:27pm EST
Franch constitutional body rules against carbon tax
PARIS (Reuters) - France's planned carbon tax cannot be applied because it includes too many exemptions, a French government body ensuring laws are constitutional ruled on Tuesday, in an embarrassing setback for the government.
The tax on carbon-emitting products, meant to encourage consumers to save energy and use less fossil fuels, is one of President Nicolas Sarkozy's most loudly defended initiatives and was meant to come into effect on January 1, 2010.
"The exemptions included in the carbon tax run counter to the aim of fighting climate change and create inequalities with respect to public charges," the Constitutional Council said in a statement.
Prime Minister Francois Fillon said in a separate statement the cabinet would in January examine a new law taking into account the ruling.
Sarkozy has thrown his weight behind the levy, saying it would support the battle against climate change, but the plan had to be watered down extensively to appease critics.
In its ruling, the council said the law exempted some of the worst industrial polluters such as refineries and included relief for farmers and fishermen, among numerous other exemptions.
"93 percent of carbon dioxide emissions of industrial origin, other than fuel, will be totally exempt from the carbon tax," the government body said in the ruling.
The tax has caused public upheaval in France, with critics within the ruling party saying the tax would hurt poor families and people in rural areas with little public transport.
The opposition Greens broadly agreed with the principle but said the tax should be higher, while the Socialists said it would deal a further blow to consumers already struggling to cope with the economic downturn.
As a result, the system that was eventually adopted would have differentiated between urban and rural dwellers, and applied to oil, gas and coal but not to electricity.
The levy, initially set at 17 euros ($25) per tonne of carbon dioxide emissions, would have translated into a rise in the price of fuel for cars, domestic heating and factories.
(Reporting by Gerard Bon and Sophie Hardach)
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