People's Bank Of China Governor Announces PRC Favors Carbon Tax - 180-Degree Shift

[hatrack]

Zhou Xiaochuan, the governor of the People's Bank of China, revealed at the G20 meeting in Melbourne yesterday that the country's position on global warming had changed. Mr Zhou said China now backed a pricing mechanism for carbon dioxide to be included in the global energy pricing regime. China's stance was supported by France, which has lobbied for a carbon tax in a bid to address the growing issue of global warming.

Mr Zhou said carbon dioxide emissions should be factored into the cost of energy. "It will give enough incentive to adjust the supply and demand relationship," he said. "We know for developing countries . . . it's difficult. For the long-term use I still think a price mechanism is important."

Mr Zhou said the price mechanism could mean slower economic growth for China, but would encourage it to look for cleaner, greener energy. The outlook is a policy turnaround for China, which is the world's largest polluter.

Australia has rejected global calls for a carbon tax, and argued that it would cost the viability of domestic coal production. Treasurer Peter Costello chaired the G20 meeting of finance ministers and central bankers, and pushed for a collective global approach to climate change.

EDIT

http://www.news.com.au/heraldsun/story/0,21985,20785301-664,00.html

[JohnWxy]

1. recommended!