Fair Fuel APPG for UK Motorists and UK Hauliers August 2021 Page | 33 Governments seeking to manage these threats must thus weigh the known costs of early action to mitigate these risks against the uncertain costs of dealing with the fallout when they crystallise. They must also weigh the limited but more deliverable benefits of acting unilaterally against the greater but more elusive gains from acting globally. This can be addressed by applying an appropriate price on carbon (for example via a tax or an emissions trading scheme (ETS)). But there are many other policy challenges to overcome, so the path to net zero can be expected to involve many policy levers on top of carbon taxes and ETSs, including bans and other regulations, and public subsidies and investment. These will all have economic and fiscal implications of one sort or another – either directly (via taxes and spending) or indirectly (via wider economic outcomes). Based on elements of the Bank and CCC (Climate change crisis) scenarios, the tax rate starts at £101 per tonne (in real terms) and rises steadily to reach £187 per tonne in 2050-51. On this basis, additional carbon tax revenues raise 1.8 per cent of GDP in 2026-27, after which revenues decline steadily to 0.5 per cent of GDP in 2050-51 as falling emissions more than outweigh the effect of the rising tax rate. Towards the end of this time frame revenues are very uncertain, with an increasingly narrow tax base and an increasingly high tax rate, meaning even small differences in the pace of emissions abatement would have large revenue impacts. China wealth creation policies trump the environment! China Puts Economy First, Climate Last 13 The UK is ONLY responsible for just 1% (& falling) of global Man-made CO 2 emissions. “China and emerging nations refuse to adopt UK’s suicidal environmental policies.” GWPF 28th June 2021 China’s top economic planners have put the brakes on attempts by environmental officials to reduce carbon emissions as driving growth takes priority over meeting climate targets for now, according to people familiar with the matter. Officials at China’s main economic planning agency, the National Development and Reform Commission, have limited the initial scope of a national carbon-trading system, which is set to go into full operation later this month after pilot projects in eight Chinese cities. Climate change results from several market failures – most importantly that the costs of emissions to current and future generations are not borne by those who produce them today. Carbon tax revenues. The OBD scenario assumes all emissions are taxed, and more heavily, from 2026-27 onwards (which could be achieved by extending the UK ETS or imposing a uniform carbon tax in its place).