The shipping industry is focusing on carbon neutral vessels that will limit the negative impact of CO2 emissions on the planet. Swedish firm Yara International has partnered with several other firms to build a cargo ship powered by green and blue ammonia. These clean ammonias do not use fossil fuels in their production so are a more environmentally friendly fuel source. The new ship is expected to launch in 2026.
Tag: externalities
The Federal Reserve is Testing How Climate Change Could Hurt Big Banks (Micro News for January 21, 2023 – January 27, 2023)
The Federal Reserve notified the six biggest U.S. banks that they have until July 2023 to provide information showing the impact of "disastrous climate change" on bank profits. The Fed directed the banks to show the impact of various "climate stress tests" that included heat waves, floods, droughts, and wildfires.
EU Agrees to the World’s Largest Carbon Border Tax (Micro News for December 17, 2022 – December 23, 2022)
The European Union's quest to be carbon-neutral by 2050 resulted in a major agreement between EU nations on a carbon border tax. The Carbon Border Adjustment Mechanism will result in a "pollution price" being added to EU imports manufactured without strict emission standards. Industries inside the EU are forced to adhere to strict emission standards that would make them uncompetitive with imports if the tax was not imposed.
A Plan to Tax the Rich to Fund Electric Cars Defeated by California Voters (Macro News for November 5, 2022 – November 11, 2022)
California's focus on environmental issues pushed numerous changes to business policies and consumer freedoms over the past several decades. However, the newest environmental initiative, Proposition 30, failed to gain voter support. Proposition 30 would have taxed incomes greater than $2 million by another 1.75% and used the money to provide incentives for consumers to buy electric vehicles and install EV chargers. Most of these incentives were directed toward low income households. About 20% of the funds would have been used for wildfire prevention and training firefighters.
Pearson Economic News 