Oil nations asked to consider carbon tax on exports

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http://www.guardian.co.uk/environment/2012/nov/21/oil-nations-carbon-tax-climate-talks?intcmp=122


The Ecuador-led initiative, submitted to the Organisation of Petroleum Exporting Countries, could see a 3-5% tax levied on every barrel of oil exported to rich countries. Photograph: Corbis/Barbara Davidson

The world's largest oil-exporting countries have been asked to consider imposing a small carbon tax on oil as a way to break the deadlock over finance for poorer countries in the UN climate talks.

The Ecuador-led initiative, submitted to the Organisation of Petroleum Exporting Countries (Opec), could see a 3-5% tax levied on every barrel of oil exported to rich countries. This could potentially raise $40-60bn a year for the green climate fund, what is expected to be the principle route of funding for developing countries to adapt to climate change.

The Ecuadorean president, Rafael Correa, proposed a carbon tax at a summit of Arab and South American countries in October in Peru which included the heads of state and energy ministers of nine of Opec's 12 countries. The Guardian understands the proposal was taken seriously and not dismissed out of hand. The idea was first mooted in 2001 by former World Bank chief economist Herman Daly – leading it to be dubbed the "Daly-Correa tax" – and will be further discussed by Opec countries at the UN climate talks which open on Monday in Doha.