Good Oilfield Practice sets the standards that oil and gas operators use to conduct their operations. This article provides a comprehensive, historical analysis of Good Oilfield Practice from its origins from more than a century ago to today’s modern global industry. It has constantly evolved to cover all facets of the oil and gas industry, which reflects the risk, complexity, and uncertainty associated with the industry’s operations. Good Oilfield Practice is often described differently with different names and consists of many standards. It is not a single standard. It is many. It is both an objective and a negligence standard. Good Oilfield Practice comes from a number of sources, including the industry’s agreements and its regulatory framework. There is a distinction between good and best practices, even when there may be challenges in determining what is ‘best’. Given the many similarities and synergies, the standards developed in the oil and gas industry are now migrating to other energy sectors.
{"title":"Good Oilfield Practice: its history and evolution","authors":"A Timothy Martin","doi":"10.1093/jwelb/jwae016","DOIUrl":"https://doi.org/10.1093/jwelb/jwae016","url":null,"abstract":"Good Oilfield Practice sets the standards that oil and gas operators use to conduct their operations. This article provides a comprehensive, historical analysis of Good Oilfield Practice from its origins from more than a century ago to today’s modern global industry. It has constantly evolved to cover all facets of the oil and gas industry, which reflects the risk, complexity, and uncertainty associated with the industry’s operations. Good Oilfield Practice is often described differently with different names and consists of many standards. It is not a single standard. It is many. It is both an objective and a negligence standard. Good Oilfield Practice comes from a number of sources, including the industry’s agreements and its regulatory framework. There is a distinction between good and best practices, even when there may be challenges in determining what is ‘best’. Given the many similarities and synergies, the standards developed in the oil and gas industry are now migrating to other energy sectors.","PeriodicalId":501094,"journal":{"name":"The Journal of World Energy Law & Business","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142223704","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Domingos Joaquim Francisco, Mikael Jhordan Lacerda Cordeiro, Daniel de Abreu Pereira Uhr, Júlia Gallego Ziero Uhr
This article offers an in-depth examination of the historical trajectory of Angola’s hydroelectric energy sector, contextualizing its evolution within the country’s political and economic landscape. It begins by tracing the origins of hydroelectric development. Subsequently, it delves into the post-independence era marked by political turmoil and civil conflict, elucidating the challenges faced by the energy infrastructure amidst the ravages of war. Moreover, the article scrutinizes Angola’s post-conflict reconstruction efforts, particularly in revitalizing hydroelectric facilities and formulating strategic energy policies. It assesses the regulatory framework governing the energy sector, identifying deficiencies and proposing avenues for enhancement to ensure transparency and efficiency. This study explores the prospects and challenges associated with the Baynes Binational Hydroelectric Project on the Angola–Namibia border, highlighting its potential to foster regional cooperation and bolster energy security. The article underscores institutional reforms and strategic investments to propel Angola towards a more resilient and inclusive energy future.
{"title":"Pathways to sustainable development: an overview of the progress and obstacles of hydroelectric power production in Angola","authors":"Domingos Joaquim Francisco, Mikael Jhordan Lacerda Cordeiro, Daniel de Abreu Pereira Uhr, Júlia Gallego Ziero Uhr","doi":"10.1093/jwelb/jwae012","DOIUrl":"https://doi.org/10.1093/jwelb/jwae012","url":null,"abstract":"This article offers an in-depth examination of the historical trajectory of Angola’s hydroelectric energy sector, contextualizing its evolution within the country’s political and economic landscape. It begins by tracing the origins of hydroelectric development. Subsequently, it delves into the post-independence era marked by political turmoil and civil conflict, elucidating the challenges faced by the energy infrastructure amidst the ravages of war. Moreover, the article scrutinizes Angola’s post-conflict reconstruction efforts, particularly in revitalizing hydroelectric facilities and formulating strategic energy policies. It assesses the regulatory framework governing the energy sector, identifying deficiencies and proposing avenues for enhancement to ensure transparency and efficiency. This study explores the prospects and challenges associated with the Baynes Binational Hydroelectric Project on the Angola–Namibia border, highlighting its potential to foster regional cooperation and bolster energy security. The article underscores institutional reforms and strategic investments to propel Angola towards a more resilient and inclusive energy future.","PeriodicalId":501094,"journal":{"name":"The Journal of World Energy Law & Business","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141784668","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
While constructing pathways to achieving energy transitions is challenging to all global community members, this challenge is even greater for oil-exporting countries. Oil-exporting countries and their national oil companies (NOCs) are key players in the energy transitions. These actors’ existing capacities (financial, technical, human) must be leveraged to accelerate decarbonization processes that are scaled and globally deployed. Energy transition roadmaps must embrace all relevant actors, including oil companies, as stakeholders that can significantly contribute to the acceleration of energy transitions across the globe. This situation must be reflected in outlooks and assessments of energy transitions. This article studies the regulatory conditions and interventions that have made the evolution of several NOCs possible as relevant actors in the 21st-century landscape, considering their activities in traditional energy sources, decarbonization solutions, and new energy sources. These NOCs vary with some having greater flexibility in shaping policies while others needing to comply with regulatory standards. All NOCs in this study, ADNOC, ARAMCO, and the NNPCL were entrusted with a degree of autonomy in addressing climate change, yet the larger margin of discretion ADNOC and ARAMCO corporations enjoyed has allowed them to excel in shaping and implementing these policies. The focus of this paper is on the role of soft law in this change, particularly ESG standards, as leading energy transition governance tools, which introduce accountability and environmental principles that guide the activity of these corporate actors beyond bear minimum requirements in laws and regulations.
{"title":"Oil exporters and the challenges ahead: the role of NOCs in energy transitions","authors":"Nasser Alreshaid, Leonardo Sempertegui","doi":"10.1093/jwelb/jwae014","DOIUrl":"https://doi.org/10.1093/jwelb/jwae014","url":null,"abstract":"While constructing pathways to achieving energy transitions is challenging to all global community members, this challenge is even greater for oil-exporting countries. Oil-exporting countries and their national oil companies (NOCs) are key players in the energy transitions. These actors’ existing capacities (financial, technical, human) must be leveraged to accelerate decarbonization processes that are scaled and globally deployed. Energy transition roadmaps must embrace all relevant actors, including oil companies, as stakeholders that can significantly contribute to the acceleration of energy transitions across the globe. This situation must be reflected in outlooks and assessments of energy transitions. This article studies the regulatory conditions and interventions that have made the evolution of several NOCs possible as relevant actors in the 21st-century landscape, considering their activities in traditional energy sources, decarbonization solutions, and new energy sources. These NOCs vary with some having greater flexibility in shaping policies while others needing to comply with regulatory standards. All NOCs in this study, ADNOC, ARAMCO, and the NNPCL were entrusted with a degree of autonomy in addressing climate change, yet the larger margin of discretion ADNOC and ARAMCO corporations enjoyed has allowed them to excel in shaping and implementing these policies. The focus of this paper is on the role of soft law in this change, particularly ESG standards, as leading energy transition governance tools, which introduce accountability and environmental principles that guide the activity of these corporate actors beyond bear minimum requirements in laws and regulations.","PeriodicalId":501094,"journal":{"name":"The Journal of World Energy Law & Business","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141738917","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article discusses the update of the European Market Infrastructures Regulation as a consequence of the 2021–2023 energy crisis. This article explains European law decisions being made to ensure the continued functioning of European derivatives markets. The article focuses on the modification of the margin requirements of central counterparties (ie the decision to accept unsecured commercial bank guarantees, emission allowances, and/or debt issued by public entities as collateral). A relaxation of the stringent collateral requirements could on the one hand ensure energy firms’ continuation to central clearing, but on the other hand lead to negative macroprudential spillover effects. Although central counterparties are most useful in stressed market circumstances and then have to be sufficiently sound, the European Commission still opted for a temporary relaxation, and this article details all the pros and cons that were taken into account in this final decision.
{"title":"A relaxation of European derivatives clearing legislation as a consequence of the 2021–2023 energy crisis","authors":"Randy Priem","doi":"10.1093/jwelb/jwae010","DOIUrl":"https://doi.org/10.1093/jwelb/jwae010","url":null,"abstract":"This article discusses the update of the European Market Infrastructures Regulation as a consequence of the 2021–2023 energy crisis. This article explains European law decisions being made to ensure the continued functioning of European derivatives markets. The article focuses on the modification of the margin requirements of central counterparties (ie the decision to accept unsecured commercial bank guarantees, emission allowances, and/or debt issued by public entities as collateral). A relaxation of the stringent collateral requirements could on the one hand ensure energy firms’ continuation to central clearing, but on the other hand lead to negative macroprudential spillover effects. Although central counterparties are most useful in stressed market circumstances and then have to be sufficiently sound, the European Commission still opted for a temporary relaxation, and this article details all the pros and cons that were taken into account in this final decision.","PeriodicalId":501094,"journal":{"name":"The Journal of World Energy Law & Business","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141193277","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The evolving regulatory landscape within the European Union demonstrates a transition from prioritizing carbon capture and storage over carbon capture and utilization towards a more equitable treatment of both approaches in relevant legislation and policy frameworks. Nevertheless, the ‘permanence’ criterion of carbon dioxide in the products remains an ongoing challenge. Within the current European legal framework, harnessing the regulatory incentives depends on how long carbon dioxide remains in carbon capture and utilization products. The study elucidates the evolving regulatory landscape surrounding carbon capture and utilization by examining recent legislative initiatives and amendments to key directives such as the Emissions Trading System Directive and the Renewable Energy Directive. Furthermore, it explores the implications of the European Union Net-zero Industry Act and the Carbon Removal Certification Framework. In addition, this article examines and explains the need for expanding the scope of carbon capture and utilization and storage by incorporating pre-combustion carbon capture through methane splitting into the definition.
{"title":"Carbon capture and utilization under EU law: impermanent storage of CO2 in products and pre-combustion carbon capture","authors":"Kim Talus, Reza Maddahi","doi":"10.1093/jwelb/jwae009","DOIUrl":"https://doi.org/10.1093/jwelb/jwae009","url":null,"abstract":"The evolving regulatory landscape within the European Union demonstrates a transition from prioritizing carbon capture and storage over carbon capture and utilization towards a more equitable treatment of both approaches in relevant legislation and policy frameworks. Nevertheless, the ‘permanence’ criterion of carbon dioxide in the products remains an ongoing challenge. Within the current European legal framework, harnessing the regulatory incentives depends on how long carbon dioxide remains in carbon capture and utilization products. The study elucidates the evolving regulatory landscape surrounding carbon capture and utilization by examining recent legislative initiatives and amendments to key directives such as the Emissions Trading System Directive and the Renewable Energy Directive. Furthermore, it explores the implications of the European Union Net-zero Industry Act and the Carbon Removal Certification Framework. In addition, this article examines and explains the need for expanding the scope of carbon capture and utilization and storage by incorporating pre-combustion carbon capture through methane splitting into the definition.","PeriodicalId":501094,"journal":{"name":"The Journal of World Energy Law & Business","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140929553","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article provides a comprehensive overview of Türkiye’s nuclear energy aspirations, focusing on the historical evolution, international cooperation, organizational structure, legal framework, and policy dimensions. It elaborates on Türkiye’s endeavours to integrate nuclear energy into its national power infrastructure, particularly highlighting the progress made in the development of the Akkuyu Nuclear Power Plant (NPP). Initiated in 1968, the Akkuyu NPP project remained stagnant for decades. It gained momentum in the late 2010s when Rosatom, under an agreement between the Turkish and Russian states, began construction as part of its nuclear export strategy. The article mainly discusses the significant legislative and regulatory advancements made post-2021, propelled by the near completion of the Akkuyu NPP. These actions signify a crucial phase in creating a robust legal framework for nuclear energy in Türkiye. Moreover, the article presents proposals for law and policy, considering geopolitical, economic, and technical constraints, to guide the future direction of Türkiye’s domestic nuclear energy programme. In conclusion, the evolution of nuclear energy law in Türkiye, highlighted by the development of the Akkuyu NPP and subsequent legal and regulatory measures, presents an essential case study.
{"title":"Türkiye’s nuclear energy aspirations: policy challenges and legal trajectory","authors":"Onur Cagdas Artantas","doi":"10.1093/jwelb/jwae005","DOIUrl":"https://doi.org/10.1093/jwelb/jwae005","url":null,"abstract":"This article provides a comprehensive overview of Türkiye’s nuclear energy aspirations, focusing on the historical evolution, international cooperation, organizational structure, legal framework, and policy dimensions. It elaborates on Türkiye’s endeavours to integrate nuclear energy into its national power infrastructure, particularly highlighting the progress made in the development of the Akkuyu Nuclear Power Plant (NPP). Initiated in 1968, the Akkuyu NPP project remained stagnant for decades. It gained momentum in the late 2010s when Rosatom, under an agreement between the Turkish and Russian states, began construction as part of its nuclear export strategy. The article mainly discusses the significant legislative and regulatory advancements made post-2021, propelled by the near completion of the Akkuyu NPP. These actions signify a crucial phase in creating a robust legal framework for nuclear energy in Türkiye. Moreover, the article presents proposals for law and policy, considering geopolitical, economic, and technical constraints, to guide the future direction of Türkiye’s domestic nuclear energy programme. In conclusion, the evolution of nuclear energy law in Türkiye, highlighted by the development of the Akkuyu NPP and subsequent legal and regulatory measures, presents an essential case study.","PeriodicalId":501094,"journal":{"name":"The Journal of World Energy Law & Business","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140563908","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In September 2022, the Title Transfer Facility (TTF) prices spiked at unprecedented levels. For various reasons, including the Russian invasion of Ukraine, Europe was facing an energy crisis: gas supply was significantly reduced while demand remained unchanged. Policymakers responded with a variety of measures, including regulatory interventions on the TTF market. While seeking to improve the situation in the ‘real world economy’, these measures have an important financial regulatory angle. This article investigates the potential impact of these interventions, in particular of the Market Correction Mechanism, on the wholesale gas market from a financial markets perspective. Considering, amongst others, observations from the EU Agency for the Cooperation of Energy Regulators, the European Securities and Markets Authority, and the European Central Bank, it appears that these interventions may have unintended negative consequences in light of the functioning and attractiveness of the Capital Markets Union and achieving strategic autonomy.
{"title":"The European energy crisis, the Dutch TTF, and the market correction mechanism: a financial markets perspective","authors":"Ebbe Rogge","doi":"10.1093/jwelb/jwae004","DOIUrl":"https://doi.org/10.1093/jwelb/jwae004","url":null,"abstract":"In September 2022, the Title Transfer Facility (TTF) prices spiked at unprecedented levels. For various reasons, including the Russian invasion of Ukraine, Europe was facing an energy crisis: gas supply was significantly reduced while demand remained unchanged. Policymakers responded with a variety of measures, including regulatory interventions on the TTF market. While seeking to improve the situation in the ‘real world economy’, these measures have an important financial regulatory angle. This article investigates the potential impact of these interventions, in particular of the Market Correction Mechanism, on the wholesale gas market from a financial markets perspective. Considering, amongst others, observations from the EU Agency for the Cooperation of Energy Regulators, the European Securities and Markets Authority, and the European Central Bank, it appears that these interventions may have unintended negative consequences in light of the functioning and attractiveness of the Capital Markets Union and achieving strategic autonomy.","PeriodicalId":501094,"journal":{"name":"The Journal of World Energy Law & Business","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140564060","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The European Commission plans to achieve the decarbonization of dozens of European Union (EU) islands by 2030. This would reduce greenhouse gas emissions, lower the dependency of islands on imported fuels, and potentially reduce local energy prices. At the same time, it may accelerate the mainland’s own energy transition through the import of surplus energy from renewable sources, the provision of aggregated flexibility services, and the testing of both technologies and policies on islands for replication and adaptation on the continent. Although islands are not even a legal category per se in EU energy law, the existing legal framework already allows to harness various concepts to foster the energy transition of EU islands. This article reviews available legal qualifications and regimes such as small systems’ exemptions, energy communities, positive energy districts, and local flexibility markets in the context of the decarbonization of EU islands. Potentially, they could open many different ways to tailor local energy transitions, channelling local actions to accelerate the whole process.
{"title":"Harnessing EU legal concepts for the energy transition on islands","authors":"Romain Mauger, Lea Diestelmeier, Ceciel Nieuwenhout","doi":"10.1093/jwelb/jwae002","DOIUrl":"https://doi.org/10.1093/jwelb/jwae002","url":null,"abstract":"The European Commission plans to achieve the decarbonization of dozens of European Union (EU) islands by 2030. This would reduce greenhouse gas emissions, lower the dependency of islands on imported fuels, and potentially reduce local energy prices. At the same time, it may accelerate the mainland’s own energy transition through the import of surplus energy from renewable sources, the provision of aggregated flexibility services, and the testing of both technologies and policies on islands for replication and adaptation on the continent. Although islands are not even a legal category per se in EU energy law, the existing legal framework already allows to harness various concepts to foster the energy transition of EU islands. This article reviews available legal qualifications and regimes such as small systems’ exemptions, energy communities, positive energy districts, and local flexibility markets in the context of the decarbonization of EU islands. Potentially, they could open many different ways to tailor local energy transitions, channelling local actions to accelerate the whole process.","PeriodicalId":501094,"journal":{"name":"The Journal of World Energy Law & Business","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140154150","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In June 2023, Israel approved the development of Gaza Marine, a small offshore gas field near the Gaza Strip that has remained dormant since its discovery in 2000. The field can potentially benefit the Palestinian Authority (PA) in terms of export revenue and energy independence. However, the legal status of the field remains unclear, and the 2023 Israel–Hamas war further complicated this matter. On the one hand, although Israel has not made any legal claim to Gaza Marine, its approval to develop the field is still considered necessary by all parties involved. On the other hand, while the PA views itself as the rightful owner of the field, it has had no effective control over Gaza’s coastline or waters since 2007, weakening its claim. This article reviews the complex history and evolving legal status of the Gaza Marine gas field up until the 2023 war. It argues that there is still room for optimism regarding the future development of the field, especially when considering its similarities to the successful 2022 maritime agreement between Israel and Lebanon.
{"title":"Striking energy deals in disputed seas: the case of the Gaza Marine gas field","authors":"Elai Rettig, Benny Spanier","doi":"10.1093/jwelb/jwad039","DOIUrl":"https://doi.org/10.1093/jwelb/jwad039","url":null,"abstract":"In June 2023, Israel approved the development of Gaza Marine, a small offshore gas field near the Gaza Strip that has remained dormant since its discovery in 2000. The field can potentially benefit the Palestinian Authority (PA) in terms of export revenue and energy independence. However, the legal status of the field remains unclear, and the 2023 Israel–Hamas war further complicated this matter. On the one hand, although Israel has not made any legal claim to Gaza Marine, its approval to develop the field is still considered necessary by all parties involved. On the other hand, while the PA views itself as the rightful owner of the field, it has had no effective control over Gaza’s coastline or waters since 2007, weakening its claim. This article reviews the complex history and evolving legal status of the Gaza Marine gas field up until the 2023 war. It argues that there is still room for optimism regarding the future development of the field, especially when considering its similarities to the successful 2022 maritime agreement between Israel and Lebanon.","PeriodicalId":501094,"journal":{"name":"The Journal of World Energy Law & Business","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-01-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139584361","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
During 2021, the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO), though differently, supported the idea that to effectively tackle climate change, it is necessary to introduce a global price on carbon emissions. Generally, a single-rate Global Carbon Tax (GCT) for all carbon emissions would probably be the best mechanism to tax carbon emissions while still favouring trading relationships globally within a WTO-compliant environment. However, implementing a single-rate GCT is extremely complicated. The IMF has proposed the establishment of an International Carbon Price Floor (ICPF), but it has recognized that to work the ICPF needs multiple carbon price minima according to the considered countries’ category of development level. This article, which is divided into seven sections, reflects on the idea of introducing a GCT. Section 1 briefs the introduction. Section 2 explains what the main reason is for putting a price on carbon emissions and clarifies how the two most important price-setting mechanisms, ie an ETS and a carbon tax, work. Section 3 explains how to set the carbon tax rate. Section 4 analyses the IMF’s GCT proposal. Section 5 discusses the benefits of a GCT, especially if based on a single tax rate. Section 6 reviews what, at least in the short term, the three main obstacles to the implementation of a single-rate GCT are. Section 7 concludes.
{"title":"The pros and cons of a global carbon tax at a single rate","authors":"Alessandro Bacci","doi":"10.1093/jwelb/jwac046","DOIUrl":"https://doi.org/10.1093/jwelb/jwac046","url":null,"abstract":"During 2021, the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO), though differently, supported the idea that to effectively tackle climate change, it is necessary to introduce a global price on carbon emissions. Generally, a single-rate Global Carbon Tax (GCT) for all carbon emissions would probably be the best mechanism to tax carbon emissions while still favouring trading relationships globally within a WTO-compliant environment. However, implementing a single-rate GCT is extremely complicated. The IMF has proposed the establishment of an International Carbon Price Floor (ICPF), but it has recognized that to work the ICPF needs multiple carbon price minima according to the considered countries’ category of development level. This article, which is divided into seven sections, reflects on the idea of introducing a GCT. Section 1 briefs the introduction. Section 2 explains what the main reason is for putting a price on carbon emissions and clarifies how the two most important price-setting mechanisms, ie an ETS and a carbon tax, work. Section 3 explains how to set the carbon tax rate. Section 4 analyses the IMF’s GCT proposal. Section 5 discusses the benefits of a GCT, especially if based on a single tax rate. Section 6 reviews what, at least in the short term, the three main obstacles to the implementation of a single-rate GCT are. Section 7 concludes.","PeriodicalId":501094,"journal":{"name":"The Journal of World Energy Law & Business","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138495767","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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