The economy: costs & benefits

Cash-back and re-investments cover temporarily rising cost

The climate tax on fossil fuel will initially increase global energy costs during the transition period. Certain goods and services will become more expensive. However –

• Global energy bill will not be higher than what we already know

  Due to exploration, geopolitical and market influences, energy cost fluctuations are frequent. The proposed climate tax does not increase the global energy bill above what we have seen in 2008, 2013, and the 1980s – cost developments that the global economy can easily absorb.

• Short term increase, long-term profits

  The cost for energy will be significantly lower then today after the transition to a renewable energy infrastructure

• You will receive 7’000 $ !!

  Giving the tax revenues back to the people will increase the purchasing power of low-income brackets, maintain the purchase power of the middle class, and not affect the purchasing power of the high-income brackets.

• Investments generate jobs and growth:

  In addition, the large investments in renewable energy infrastructure generated through the climate tax generated jobs and secondary investments.

During the transition

• Limited cost increase

  Global energy costs will not rise above levels seen recently induced by high oil spot prices

• Cash-back maintains purchase power

  The cash-back ensures that the purchasing power of lower income brackets is not negatively affected

• Innovation

  The higher cost of fossil energy and the investments acts as trigger for innovation

• New jobs

  The investments in renewable energy infrastructure will more than compensate for lost jobs in the fossil industry

• Positive net impact

  Positive net impact on the economy after Year 3 of tax introduction and thereafter

After the transition

• Lower energy bill

  Global energy cost will be at 4% of World GDP, as compared to 8% in 2018.

• No more geopolitical risks

  The World will finally be free of the unpredictable fluctuations of the global oil spot price.

• Zero GHG emissions

  After 15 years, all fossil fuels will be replaces, drastically reducing a catastrophic climate derailment

A global climate tax, through the cash-back to people and the re-investment, does not only avert catastrophic climate change, but also acts as economic stimulus.