GLOBAL SUBSIDIES INITIATIVE
Subsidy WatchIssue 26, August 2008
Commentary
News
The UK department responsible for agricultural subsidies under the EU’s single payment scheme has come under criticism from a parliamentary committee.
Problems with administering the single payments have haunted the Department for Environment and Rural Affairs (DEFRA) since the subsidy scheme was introduced in 2005. The single payment scheme, which replaced subsidies that were linked to production, is intended to be less market distorting.
As the rise in petroleum prices has led waves of protests by European fishermen seeking increases in government aid to offset the rising cost of diesel, the European Commission last month submitted emergency measures that will increase aid to fishermen under the EU’s Common Fisheries Policy (CFP). On 16 July the EU Council, composed of national ministers, approved the emergency measures.
A Swiss tax exemption for biofuels that meet certain environmental and labour standards, which had been reserved for domestic producers, has been extended to include imports. In order to qualify for the exemption, importers must prove that their fuels emit 40% less CO2 than the fossil fuel alternative on a life-cycle basis; harm neither tropical forests nor biodiversity; and meet ‘socially acceptable conditions’ for production.
Studies
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Massive public subsidies required before hydrogen vehicles are competitive, say U.S. scientists
Hydrogen vehicles will not become competitive without massive public and private investment over the next 15 years, according to a report by the U.S. National Research Council (NRC).
The NRC, an independent committee of American scientists, estimates that the U.S. government would have to invest US$ 55 billion between 2008 and 2023 in order to boost technology and infrastructure to a level where hydrogen vehicles would be commercially competitive.
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Rand Institute study favours fossil-fuel tax over renewable energy subsidies
A study released by the Rand Corporation, a nonprofit think-tank, argues that it would be better for the United States to meet a 25% renewable energy standard by adopting a tax on fossil-fuels rather than providing subsidies for renewable energies.
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Last month, Oxfam GB launched an emergency appeal for East Africa. Oxfam’s last call for emergency help for the region was in 2006, and there have been countless others before, precipitated by drought, conflict or, like now, both. But this time, something is different. There is food on shelves, but people can’t afford it. The World Food Programme, hamstrung by high food prices, is scrambling around for supplies and funding where it can.