Exxon Voices Support of Carbon Taxes over Cap-and-Trade System

Sydney, Australia (March 20, 2007)- ExxonMobil submitted a report to the Prime Ministerial Task Group on Emissions Trading in Australia arguing that a carbon tax has more advantages than a carbon trading system. The report states, “The main benefit of a tax is that it offers certainty and transparency about the price of the outcome. ExxonMobil believes that stability and transparency of costs will be essential to maintain public support for long-term, uncertain efforts to address risks over many decades.”

ExxonMobil also said that a trading system, whether international or domestic, could result in highly volatile carbon prices that may minimize the effectiveness of businesses to make long-term investments to cut emissions. However, Prime Minister John Howard, who has been considering a carbon trading system as of late, said in February, “The imposition of a tax is a very crude, inefficient and potentially damaging way of dealing with [mitigating carbon emissions] because it pays no proper regard to market forces.”
Note to tree groups: There must be transparency and clear audit standards in setting up carbon offset programs.
Related Resources:
Center for Resource Solutions
Coop America- Carbon Offsets Demystified
WikiHow- How to Buy Carbon Offsets
David Suzuki Foundation- What is a carbon offset
Clean Air-Cool Planet- Consumer’s Guide to Carbon Offsets
Union of Concerned Scientists- Global Warming Overview
The Australian
Environmental News Network