The metals sector should back global carbon taxes. It’ll be good for business
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Update time : 2022-03-31 18:48:30
Most of the metals mining sector has been opposing carbon taxes. This is a foolish mistake that works against their interests, argue Sally Innis, Benjamin Cox, John Steen and Nadja Kunz at the University of British Columbia. The tax on the carbon emissions from mining and producing most metals (with only aluminium and steel being outliers) are small compared to the price of the metal, so a carbon tax will add little to the selling price. But the same tax on oil, gas and coal will drive the transition to renewables. Because the rising production of solar panels, wind turbines, batteries etc., depends on metals so the sector will immediately see their order books expand. The authors summarise their study of various metal, fossil fuel, and carbon prices (as well as the effect on other global commodities). It’s a lesson to all sectors puzzling over the consequences of universal carbon taxes: it is worth having your relatively low-emissions activities taxed if that same tax shrinks other sectors to your advantage.
