ICCF reports Kyoto repercussions
Nov 14, 2005 10:03 AM
New research published by the International Council for Capital Formation (ICCF) reveals the broad and significant economic repercussions of adopting Kyoto for the United Kingdom (UK), Germany, Italy, and Spain, according to an ICCF news release.
The report also emphasized the impact for each nation on energy prices, economic growth, and jobs.
The series of in-depth studies analyzed the economic and energy implications of meeting emissions reductions defined under the Kyoto Protocol through an emissions trading regime.
An assumption was made that the EU emissions trading scheme will be broadened to cover all sectors, including households and transportation. The studies show a significant rise in energy costs for consumers and businesses.
The research revealed that if the four countries meet their Kyoto emissions reduction targets in 2010 they face:
•Increasing energy bills: An average increase in electricity prices of 26 percent and an average increase of 41 percent of natural gas prices by 2010 (across UK, Germany, Spain, and Italy.
•Significant job losses: Job losses of at least 200,000 in Italy, Germany, UK and Spain to meet Kyoto targets by 2010 -- rising to as many as 611,000 in Spain in 2010.
•Damage to economy: A significant reduction in GDP below base case levels by 2010: 0.8 percent for Germany, 3.1 percent for Spain, 2.1 percent for Italy, and 1.1 percent for the UK.
The ICCF research concludes that these consequences would severely damage economic growth and adversely affect standards of living across Europe.
Published after the Gleneagles Dialogue meeting of the G8 countries in London, the research confirms UK Prime Minister Tony Blair's view that countries are "nervous" about emissions targets and "would not sacrifice economic growth for external agreements."
The ICCF said it hopes that these findings will contribute to the ongoing debate on how to develop an international framework for tackling climate change -- and send a message to the EU Commission as it prepares for the first official Meeting of the Parties of the Kyoto Protocol in Montreal at the end of November.
Full copies of all the research and charts are available by clicking here for the ICCF Web site.
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