It is regrettable that the latest round of climate change talks in Lima, Peru have ended without any success in coming to an agreement on the most important issue – the imposition of consumption taxes on fossil fuels.
A tax on fossil fuels gives companies and individuals an incentive to reduce their fossil fuel consumption, while at the same time making it more attractive to seek renewable energy. There has been some hope in this regard recently. The United States, the EU, China, and South Africa all have made promises that they would reduce their carbon footprints in the near future.
The Lima negotiations, however, instead of continuing on this wave of optimism, failed to achieve anything substational. If all countries were to agree to impose taxes on fossil fuels and to reduce subsidies on the exploration of fossil fuels, then carbon emissions worldwide would be reduced. This could be achieved without compromising the competitive position of any country.
The threat of climate change is one we simply cannot ignore. Encouraging the creation of clean, renewable energy sources and reducing harmful emissions is absolutely imperative. Rich, industrialised nations must take the lead in this initiative, and come to a meaningful agreement before it is too late.