Climate Change Act 2016

Climate Change Act 2016
Esquarian Community
Citation	EC/2016/01
Enacted by	Council of Esquarium
Date enacted	16 December 2016
Enacted by	Esquarian Parliament
Date enacted	25 December 2016
Date commenced	25 December 2016
Status: In force

The Climate Change Act 2016 is an Esquarian law that is intended to slow the pace of global climate change by applying a system of carbon tax and tariffs, as well as by regulating fluorinated gases.

Background

At the 2016 Esquarian Summit, President of the Esquarian Community Everàrd Torsièl committed the Esquarian Community to taking stronger action against climate change. His proposal for a global climate tax proved too controversial to reach the final act of the Summit, but was reinvented as a proposed Esquarian law in late 2016. The text of the proposed Act was drafted and introduced by Montecara.

Provisions

The Act requires Member States to collect a uniform carbon tax on petroleum fuel, natural gas, and electricity generated by coal. This tax must be directed by national governments to programs aimed at making the transition to renewable energy.

The Act also creates a carbon tariff in imports from states outside the Esquarian Community; the tariff is waived for states that have their own carbon tax scheme. The tariff rates are set initially at twice the carbon tax rates per unit of taxation. Tariff proceeds are remitted to the Treasury of the Esquarian Community and used for aiding developing countries in their transition away from fossil fuels. The Council of Esquarium is delegated the authority to raise carbon tax and tariff rates starting six months after the ratification of the Act.

Lastly, the Act requires the phase-out of fluorinated gases within the EC by 1 January 2020.

Text

Climate Change Act 2016

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Preamble
Whereas the Esquarian Community was party to the Third Esquarian Summit in October 2016,
Whereas the Xiangmen Declaration was adopted as the final act of the Third Esquarian Summit,
Whereas the Xiangmen Declaration "acknowledges the existence of climate change" and commits parties to "reducing climate change and creating a low-carbon global economy,"
Whereas the President of the Esquarian Community committed at the Third Esquarian Summit to initiating the phase-out of greenhouse gases in addition to carbon dioxide, particularly fluorinated gases,
Whereas the Esquarian Community has power to regulate trade among its Member States and with the wider world,
Therefore, the Esquarian Community enacts the following:

Carbon Tax
1. There will be a Carbon Tax throughout the Esquarian Community.
2. Carbon Tax will be assessed initially at the following rates:

a. Per liter of petroleum fuel: 0.02 NSD

b. Per cubic meter of natural gas: 0.03 NSD

c. Per kilowatt hour of coal-generated electricity: 0.01 NSD

3. Carbon Tax will be collected at the first sale of the item in question and remitted by the seller to the relevant tax authority.
4. Carbon Tax rates may be increased by a majority decision of the Council of Esquarium beginning six months after the ratification of this Act.
5. Carbon Tax will be collected by national tax authorities and earmarked for programs which will ease the transition away from fossil fuels and toward sustainable and renewable energy.
6. Carbon Tax will be uniform throughout the Esquarian Community. Member States may, however, levy their own taxes on carbon and/or fossil fuels in addition to Carbon Tax.

Carbon Tariff
7. There will be a Carbon Tariff on fossil fuels and fossil-fuel derived electricity imported into the Esquarian Community.
8. Carbon Tariff will be assessed initially at the following rates:

a. Per liter of petroleum fuel: 0.04 NSD

b. Per cubic meter of natural gas: 0.06 NSD

c. Per kilowatt hour of coal-generated electricity: 0.02 NSD

9. Carbon Tariff will be waived on imports from states which assess a comprehensive tax on carbon emissions.
10. Carbon Tariff rates may be increased by a majority decision of the Council of Esquarium beginning six months after the ratification of this Act.
11. Carbon Tariff will be collected by national customs authorities and remitted to the Treasury of the Esquarian Community. It will be used to assist developing countries in their transition away from fossil fuels and toward sustainable and renewable energy.
12. Carbon Tariff will be uniform throughout the Esquarian Community. Member States may, however, levy their own duties on carbon and/or fossil fuels in addition to Carbon Tariff.

Fluorinated gases
13. For the purposes of this Act, "fluorinated gases" includes chlorofluorocarbons (CFCs), hydrofluorocarbons (HFCs), nitrogen trifluoride (NF₃), perfluorocarbons (PFCs), and sulfur hexafluoride (SF₆).
14. Member States are required to phase out the industrial and commercial use of fluorinated gases by 1 January 2020.
15. From 1 January 2020, fluorinated gases may not be imported into, exported from, or sold or bought within the Esquarian Community.
16. Medical or research uses of fluorinated gases are exempt under this Act.