Climate tax revenues build a renewable energy infrastructure
The revenues of the climate tax revenues are 100% re-distributed as cash-back to the people (50%), infrastructure investments (40%), as well as R&D and mitigation (10%).
- 40% of the tax revenues are invested in extending the clean renewable energy infrastructure – fro building renewable electricity generation (mainly wind & solar), and storage (capacities batteries, but also power-to-gas and other intermediate technologies).
- Each new unit of renewable energy generated replaces an energy unit of fossil energy.
- By 2035 (15 years after implementation of the tax), sufficient renewable energy is available to replace all fossil energy demand at the proposed rate of introduction of the climate tax (U$50/tCO2, increasing by U$ 50 every year).
- All all energy-related GHG emissions can theoretically be eliminated by 2035 (or15 years after tax implementation).
Renewable energy investment
The climate tax will lead to massive invstments in renewable energy infrastructure. The investments lead to a rapid expansion of the renewable energy infrastructure
Fossile and renewable energy consumption
40% of the climate tax revenues are invested in building a renwable energy infrastructure. Thanks to the large investments, the renewable energy generation will expand rapidly. By 2035, there will be sufficient renewable energy available to replace all fossil fuels.
GHG emission reduction under the global climate tax
Thanks to the massive investment and rapid development of renewable energy sources, energy-related GHG emissions will be completly eliminated – reduced to ZERO – by 2035 (or 15 years after implementation of the tax)
In practice, it is unlikely that all fossil-run appliances, e.g. oil heating’s in the residential sector, second-hand combustion engine cars, and particularly, commercial air transport, can be completely replaced by 2035, globally. Energy-related GHG emissions are therefore likely to continue into the 2040s, albeit at a very low level (2-5% of 2018 level).
Global energy mix
Most renewable energy will come from wind and solar. Off-shore wind turbines and concentrated solar power plants will become more important over time. The predictions are based on current maturity of technology. It is also possible that other technologies – e.g ocean energy, fuels from solar-powered chemical processes – will play a bigger role than here projected,depending on future technological development.