The only barriers to successfully reduce GHG emissions through a climate tax are: human
Unfortunately, a global climate tax will aslo produce certain losers: entities that do not read the signs of times and fail to adapt to a changing business environment. They see their income threatened and therefore are prone to resists. However, potential negative affected entities and people represent a small (but powerful) minority. They include
- Countries that depend on the export of fossil energy as main or significant source of income (e.g. Russia, Saudi Arabia, Venezuela, …)
- Fossil businesses. The (fossil) energy industries are considered vital, and therefore enjoy significant direct and indirect subsidies. However, if a company identifies itself as an “energy” rather than, for example, and “oil company”, there is huge new business to be made
- Energy-intensive industries, such as air transport sector and cement producers
Thanks to their financial assets and powerful political position over the past 100 years, particular fossil interest, through their lobbyists and political representatives wields significant but undue power.
The threat to their income in a changing energy infrastructure makes it unlikely that these players move aside quietly. However – they represent only a small minority.