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Iran’s Judiciary head urges international action against US sanctions on Lebanon after massive blast

Press TV – August 5, 2020

Iran’s Judiciary Chief Ebrahim Raeisi has called on the international community to take action to help lift US sanctions against Lebanon to prevent a humanitarian catastrophe in the wake of a recent massive explosion that ravaged the country’s capital Beirut.

The Iranian official on Wednesday offered his condolences to the Lebanese government and nation over the tragic explosion in Beirut, and said the damage to an important part of Beirut’s economic infrastructure and its consequences have doubled the tragedy for the people of the country.

The necessary action today, while maintaining national coherence and vigilance against acts by enemies of the Lebanese nation and government aimed at invoking sedition and division, is to immediately address the basic needs of the Lebanese people, whose supply has been disrupted as a result of this incident, Raeisi added.

He said this painful incident took place at a time when the wounds caused by the Israeli occupation and its repeated acts of aggression against the Lebanese people have not yet healed, coupled with Washington’s brutal sanctions against Beirut.

“Considering the cruel and inhumane sanctions imposed by the criminal US regime against the Lebanese people in recent months, which constitute a serious obstacle to addressing the essential needs of the Lebanese people, efforts to immediately lift these sanctions in order to prevent a humanitarian catastrophe must be on the agenda of the governments having friendly ties with Lebanon as well as the international community,” the Iranian Judiciary chief noted.

He added that the Iranian Judiciary’s High Council for Human Rights will put on the agenda taking legal action to remove these pressures and defend the rights of the Lebanese people.

Hundreds of individuals and entities have been sanctioned by the US in Lebanon, with the list focusing mainly on those with ties to the Hezbollah resistance movement. The list, however, includes a wide range of targets, from pharmaceutical companies, religious organizations and community outreach groups to banks and trading importer/exporters.

Observers say that the US sanctions on Lebanon have deteriorated the already struggling economy of the Arab country.

Rouhani tasks Iranian Red Crescent Society with sending aid to Lebanon

President Hassan Rouhani on Wednesday tasked the Iranian Red Crescent Society with sending humanitarian aid to Lebanon.

In remarks at a Wednesday cabinet meeting, Rouhani assigned the Iranian Red Crescent Society to immediately send humanitarian aid to Lebanon, including medical and health supplies.

Zarif: Iran sending field hospital to Lebanon to assist with disaster relief

Separately, Iranian Foreign Minister Mohammad Javad Zarif said in a tweet on Wednesday that Iran was sending a field hospital and medicines to Lebanon to contribute to relief operations.

“Reiterated #Iran‘s strong and steadfast solidarity with people of Lebanon in call with FM Wehbeh,” read part of the tweet, adding, ” Iran is sending field hospital & medicine to assist with disaster relief.” ” Iran stands with Lebanon,” it concluded.

Iran’s top cmdrscmdr., and defense minister sympathize with Lebanese

Separately, the chief commander of the Islamic Revolution Guards Corps (IRGC), Major General Hossein Salami, Chairman of the Chiefs of Staff of Iranian Armed Forces Major General Mohammad Baqeri and Army Commander Major General Abdolrahim Mousavi also commiserated with the Lebanese nation, government and army as well as Hezbollah Secretary General Sayyed Hassan Nasrallah on the tragic incident and expressed readiness to render assistance to the nation.

Also, Iranian Defense Minister Brigadier General Amir Hatami, in a phone conversation with his Lebanese counterpart, voiced Tehran’s readiness to send medical equipment and staff to Beirut.

Tehran to turn off Milad Tower lights in solidarity with Beirut

Following the tragic explosion in Beirut and the death of dozens of citizens of this city, the lights of Milad Tower, the sixth tallest tower in the world, will be turned off tonight at 9 p.m local time (0430 GMT) on Wednesday, August 6, as a sign of sympathy of the Iranian people with the Lebanese people.

The blast that rocked the Lebanese capital has so far killed at least 100 people and injured more than 4,000 others.

President Michel Aoun said the blast was caused by 2,750 tonnes of ammonium nitrate stored unsafely in a warehouse.

Lebanon has announced three days of mourning.

August 5, 2020 Posted by | Economics, Wars for Israel | , , , | Leave a comment

End Canada Israel Free Trade Agreement

By Yves Engler · August 4, 2020

On Sunday a demonstration is planned in Montréal against the Canada Israel Free Trade Agreement (CIFTA). Under the banner “Against Israel’s annexation of the Jordan Valley. No to the Canada Israel Free Trade Agreement!”, the march is seeking to politicize CIFTA amidst Israel’s plan to formally annex parts of the West Bank.

The march follows an open letter released last month by over 100 Montréal artists and activists calling for the cancellation of CIFTA.

Signed in 1997, CIFTA was Canada’s fourth free trade agreement and first outside the Western hemisphere (US, NAFTA and Chile). In an implicit recognition of the occupation, the free trade agreement includes the West Bank as a place where Israel’s custom laws are applied. Canada’s trade agreement is based on the areas Israel maintains territorial control over, not on internationally recognized borders. The European Union’s trade agreement with Israel, on the other hand, explicitly excludes products from territory Israel captured in the 1967 war and occupies against international law.

The Liberals “modernized” Canada’s FTA with Israel. International trade minister Jim Carr boasted the new accord “strengthens bilateral ties between Canada and Israel.” Liberal MPs on Parliament’s Standing Committee on International Trade rejected an NDP amendment to the trade accord’s legislation stipulating its implementation “shall be based on respect for human rights and international law.” They also rejected an NDP amendment to the deal that would have required distinct labels on products originating from “Palestinian territory that has been illegally occupied since 1967.”

In July 2019 Palestine Liberation Organization Executive Committee member Hanan Ashrawi wrote, “the Palestinian leadership calls on the Canadian government to act in accordance with Canadian and international laws and amend, without delay, the Canada-Israel Free Trade Agreement Implementation Act (Bill C-85), which affords products originating from illegal Israeli settlements tariff free status, in flagrant violation of Canada’s obligations under international law, including the Fourth Geneva Convention, and United Nations Security Council resolutions, including resolution 2334 (2016).”

In July 2017 the federal government said its FTA with Israel trumped Canada’s Food and Drugs Act after the Canadian Food Inspection Agency called for accurate labelling of wines produced in the occupied West Bank. After David Kattenburg repeatedly complained about inaccurate labels on two wines sold in Ontario, the CFIA notified the Liquor Control Board of Ontario (LCBO) that it “would not be acceptable and would be considered misleading” to declare wines produced in the Occupied Palestinian Territories as “products of Israel”. Quoting from longstanding official Canadian policy, CFIA noted that “the government of Canada does not recognize Israel’s sovereignty over the territories occupied in 1967.” In response to pressure from the Israeli embassy, Centre for Israel and Jewish Affairs and B’nai Brith, the government announced that it was all a mistake made by a low level CFIA official and that the Canada-Israel FTA governed the labelling of such wine, not CFIA rules. “We did not fully consider the Canada-Israel Free Trade Agreement,” a terse CFIA statement explained. “These wines adhere to the Agreement and therefore we can confirm that the products in question can be sold as currently labeled.”

In other words, the government publicly proclaimed that the FTA trumps Canada’s consumer protections. But, this was little more than a pretext to avoid a conflict with B’nai B’rith, Centre for Israel and Jewish Affairs and Israeli officials, according to Canadian Centre for Policy Alternatives Trade and Investment Research Project director Scott Sinclair. “This trade-related rationale does not stand up to scrutiny,” Sinclair wrote. “The Canadian government, the CFIA and the LCBO are well within their legal and trade treaty rights to insist that products from the occupied territories be clearly labeled as such. There is nothing in the CIFTA that prevents this. The decision to reverse the CFIA’s ruling was political. The whole trade argument is a red herring, simply an excuse to provide cover for the CFIA to backtrack under pressure.”

If the Canadian government does indeed support a rules-based international order as Prime Minister Trudeau has proclaimed then the Canada Israel Free Trade Agreement should be scrapped.

August 4, 2020 Posted by | Economics, Ethnic Cleansing, Racism, Zionism, Illegal Occupation, War Crimes | , , , , | Leave a comment

Mines, Minerals, And ‘Green Energy’: A Reality Check

By Mark P. Mills – Manhattan Institute – July 9, 2020

mineral miningAs policymakers have shifted focus from pandemic challenges to economic recovery, infrastructure plans are once more being actively discussed, including those relating to energy.

Green energy advocates are doubling down on pressure to continue, or even increase, the use of wind, solar power, and electric cars.

Left out of the discussion is any serious consideration of the broad environmental and supply-chain implications of renewable energy.

As I explored in a previous paper, “The New Energy Economy: An Exercise in Magical Thinking,”[1] many enthusiasts believe things that are not possible when it comes to the physics of fueling society, not least the magical belief that “clean-tech” energy can echo the velocity of the progress of digital technologies. It cannot.

This paper turns to a different reality: all energy-producing machinery must be fabricated from materials extracted from the earth.

No energy system, in short, is actually “renewable,” since all machines require the continual mining and processing of millions of tons of primary materials and the disposal of hardware that inevitably wears out.

Compared with hydrocarbons, green machines entail, on average, a 10-fold increase in the quantities of materials extracted and processed to produce the same amount of energy.

This means that any significant expansion of today’s modest level of green energy—currently less than 4% of the country’s total consumption (versus 56% from oil and gas)—will create an unprecedented increase in global mining for needed minerals, radically exacerbate existing environmental and labor challenges in emerging markets (where many mines are located), and dramatically increase U.S. imports and the vulnerability of America’s energy supply chain.

As recently as 1990, the U.S. was the world’s number-one producer of minerals. Today, it is in seventh place.

Even though the nation has vast mineral reserves worth trillions of dollars, America is now 100% dependent on imports for some 17 key minerals, and, for another 29, over half of domestic needs are imported.

Among the material realities of green energy:

  • Building wind turbines and solar panels to generate electricity, as well as batteries to fuel electric vehicles, requires, on average, more than 10 times the quantity of materials, compared with building machines using hydrocarbons to deliver the same amount of energy to society.
  • A single electric car contains more cobalt than 1,000 smartphone batteries; the blades on a single wind turbine have more plastic than five million smartphones; a solar array that can power one data center uses more glass than 50 million phones.
  • Replacing hydrocarbons with green machines under current plans—never mind aspirations for far greater expansion—will vastly increase the mining of various critical minerals around the world. For example, a single electric car battery weighing 1,000 pounds requires extracting and processing some 500,000 pounds of materials. Averaged over a battery’s life, each mile of driving an electric car “consumes” five pounds of earth. Using an internal combustion engine consumes about 0.2 pounds of liquids per mile.
  • Oil, natural gas, and coal are needed to produce the concrete, steel, plastics, and purified minerals used to build green machines. The energy equivalent of 100 barrels of oil is used in the processes to fabricate a single battery that can store the equivalent of one barrel of oil.
  • By 2050, with current plans, the quantity of worn-out solar panels—much of it nonrecyclable—will constitute double the tonnage of all today’s global plastic waste, along with over three million tons per year of unrecyclable plastics from worn-out wind turbine blades. By 2030, more than 10 million tons per year of batteries will become garbage.

Download PDF

Read more at Manhattan Institute

August 3, 2020 Posted by | Economics, Environmentalism, Timeless or most popular | Leave a comment

Iran’s natural gas network reaching full penetration rate: Minister

Press TV – August 3, 2020

Iran’s Oil Minister Bijan Namdar Zanganeh says the country will reach almost a full natural gas penetration rate next summer.

Zanganeh said on Monday that more than 95 percent of all households in Iran would have access to natural gas once the current administrative government leaves office in August 2021.

Zanganeh said that the figure, which he described as unique in the world, would be above a target set in 2013.

“We do not have such a level of extensive gas penetration in the world, this is an important infrastructure which people have a good grasp of it,” he said.

Iran is the second largest holder of natural gas reserves in the world. It has significantly boosted production in recent years despite sanctions imposed by the United States on the country’s energy sector.

Growing production has become possible thanks to massive development plans in the sprawling South Pares gas field, the world’s largest gas reserve which is shared between Iran and Qatar in the Persian Gulf.

Zanganeh, who was speaking at a video conference session to inaugurate new gas projects, said building out South Pars had allowed Iran to expand the coverage of its national gas network to thousands of villages across the country.

Elaborating on gas export figures, he said that Iran is currently pumping some 75 million cubic meters (mcm) of gas through pipelines to neighboring countries.

He said production at South Pars would reach 750 mcm by March 2021, adding that the figure would almost be a three-fold increase compared to 2012.

Iran’s total gas production is set to break through one billion cubic meters per day by next year. Total consumption by households normally hits record highs of 600 mcm a day during cold winter months.

August 3, 2020 Posted by | Economics | , | Leave a comment

Despite the Hype, the US has no Allies against China

By Salman Rafi Sheikh – New Eastern Outlook – 03.08.2020

Since particularly the outbreak of COVID-19 pandemic, a sea change in the US policies vis-à-vis China has taken place. Its latest manifestation came on July 23 when the US secretary of state, Mike Pompeo, delivered what has been called the American “Iron curtain” speech. Pompeo’s “Communist China and the Free World’s Future” speech does provide a significant insight into how the US is trying to establish a ‘new cold war’ global politics whereby it can place itself once again as the leader of the ‘free world’ against China, the so-called epitome of “threat” to America—its unilateral supremacy, its hegemonic domination of the world politics since the disintegration of the Soviet Union and its increasing tilt towards sabotaging multilateral agreements, such as the Iran nuclear deal, to extend its own and those of its allies’ supremacy, even if it comes at the expense of peace. Pompeo’s speech does show that the US is projecting China as an ‘evil power’ that needs to be countered. To quote him:

“If we bend the knee now, our children’s children may be at the mercy of the Chinese Communist Party, whose actions are the primary challenge today in the free world. General Secretary Xi is not destined to tyrannise inside and outside of China forever, unless we allow it. Now, this isn’t about containment. Don’t buy that. It’s about a complex new challenge that we’ve never faced before. The USSR was closed off from the free world. Communist China is already within our borders. So we can’t face this challenge alone. The United Nations, NATO, the G7 countries, the G20, our combined economic, diplomatic, and military power is surely enough to meet this challenge if we direct it clearly and with great courage.”

However, while Pompeo refused to call it “containment”, the ‘new cold war’ strategy is more of a roll back of China from the US and Europe. Simply put, the US is selling the ‘decoupling’ mantra to its allies both in Europe and elsewhere. This is how the US aims to regain the leadership position it has lost in last few years. Accordingly, while ‘decoupling’ from China is important, it is only “America”, which “is perfectly positioned to lead” this endeavour, argued Pompeo.

But the question is: how well is the US’ ‘new cold war’ rhetoric being received? As Pompeo himself said, the US alone cannot achieve this objective. The US allies, however, seem to have an all together different mindset when it comes to defining their relations with China. To the US’ dismay, not many of the allies, even if their relations with China are not typically ‘friendly’, think that following the US in its footsteps is a good idea. Not many of them seem to believe that a ‘new cold war’ is required to first de-couple and then contain China.

This was particularly evident when the Australian foreign minister Marise Payne recently visited the US even as the pandemic is truly raging there. While the minister did say that they have differences with China, Australia, like the US, has a its own position vis-à-vis China. As the minister, standing alongside Pompeo, explained further, their position is far from a potential or even real decoupling. In fact, it is that of engagement. To quote her:

“But most importantly from our perspective, we make our own decisions, our own judgments in the Australian national interest and about upholding our security, our prosperity, and our values. “So we deal with China in the same way. We have a strong economic engagement, other engagement, and it works in the interests of both countries.”

Adding further, the minister said,

“As my prime minister put it recently, the relationship that we have with China is important, and we have no intention of injuring it.”

While the US would have obviously wanted to enlist Australian support to counter China in the Pacific, Europe, too, is not particularly enthusiastic about the US’ ‘new cold war.’ In fact, US-Europe relations are already becoming too fragile to tackle what Pompeo called ‘a new challenge.’

How integral fragility is to the US-Europe relations is evident from the US decision to cut the size of its troops from Germany, a country which is not only no longer on good terms with the US, but also is actively seeking to cultivate China as a reliable economic partner for Europe. Indeed, German and Chinese leadership have established a frequency of contact that even the US does not have with Europe.

Even the UK, despite its on-going tensions with China over Hong Kong and its decision to roll back Chinese 5G, is not in line with US thinking on a grand strategy and a grand alliance versus China. Indeed, when the UK’s foreign secretary recently framed China policy in his July 20 speech to the House of Commons, he emphasised cooperation over confrontation, saying “We want to work with China. There is enormous scope for positive, constructive, engagement. There are wide-ranging opportunities, from increasing trade, to cooperation in tackling climate change.”

The US effort, therefore, to create a new iron curtain is highly unlikely to attract any bidders, ready to jump on the bandwagon, from Europe or elsewhere. Significantly enough, if Europe continues to maintain a calculated distance with the US over its China policies, other US allies, such as Australia, too will feel encouraged to chart an independent course of action.

Salman Rafi Sheikh is a research-analyst of International Relations and Pakistan’s foreign and domestic affairs.

August 3, 2020 Posted by | Economics | , , , | Leave a comment

Occupation forces obstruct pipe-construction works near Tubas

Palestinian Media Center | August 2, 2020

Israeli occupation forces obstructed works for the construction of a water pipe Saturday in the village of Atouf, near the town of Tubas in the northeast of the occupied West Bank, according to local sources.

Mayor of the village, Abdullah Besharat, told WAFA that the Israeli occupation army ordered the driver of a bulldozer working on the site to briefly stop the works.

He added that the project aims at providing potable water to dozens of livestock and cattle breeders in Atouf and neighboring villages.

August 2, 2020 Posted by | Economics, Ethnic Cleansing, Racism, Zionism | , , , | Leave a comment

Russia vows to respond ‘reciprocally’ to EU sanctions over ‘politically motivated’ & ‘far fetched’ hacking allegations

RT | July 31, 2020

Russian officials have dismissed as “baseless” restrictions imposed by the European Union on individual Russians and an intelligence unit accused of cybercrimes. Moscow has hinted at a mirrored response to Brussels’ sanctions.

“Obviously, the EU’s hostile action will not be left unanswered. As we know, everything in diplomacy is reciprocal,” Russia’s Foreign Ministry said in a statement.

On Thursday, the EU blacklisted four Russian individuals and the special technologies unit of Russia’s military intelligence agency, known as the GRU, which Brussels accuses of committing cyberattacks. A number of nationals and entities from China and North Korea were hit by sanctions as well.

Russia’s Foreign Ministry rejected the allegations as “baseless” and illegal under international law. Moscow said that the sanctions were enacted “under a far-fetched pretense,” and were strictly politically-motivated.

July 31, 2020 Posted by | Economics, Russophobia | , | Leave a comment

US-Backed Coup Gov’t in Bolivia Suspends Elections for Third Time

By Alan Macleod | MintPress News | July 24, 2020

Amid a rapidly worsening COVID-19 pandemic, Bolivia’s coup government has once again suspended much-anticipated elections that were due to be held on September 6. This is the third time the administration of Jeanine Añez has postponed them because of the virus, setting a new date for October 18.

The move has drawn condemnation from both left and right, but for different reasons. MintPress’ Ollie Vargas, who covered events from inside the country since last year’s November 10 coup, was dismayed, announcing:

Bolivia’s unelected coup regime has extended it’s illegitimate power by canceling elections once again. When we get to October they’ll invent another reason to postpone, then another, till they’ve found a buyer for the lithium & other natural resources. This is a dictatorship.

Former President Evo Morales of the Movement to Socialism (MAS) party agreed, stating that “The de facto government wants to gain more time to continue the persecution of social leaders and against MAS candidates. It’s yet another form of persecution. That’s why they don’t want elections on September 6.” Meanwhile, coup leader Fernando Camacho rejected the new date, demanding elections be scrapped altogether, a position shared by the far-right Santa Cruz “Civic Committee.”

Morales was reelected in October for another five year term. A popular president, he reduced poverty by half and extreme poverty by three quarters, while increasing the (inflation-adjusted) per capita GDP by 50 percent in his 13 years in office. He managed this primarily through a series of nationalizations of the country’s key industries and by expelling the predatory International Monetary Fund (IMF) from Bolivia. But in November, the military and police intervened, demanding he resign. Today he lives in exile in Argentina. Nevertheless, the latest polls show that the MAS candidate Luis Arce, who served as Morales’ finance minister, would win the election outright on the first ballot if it were held today. Arce accused Añez of using the pandemic as a pretext to extend her rule.

From popular mandate to elitist candidate

A little-known senator from a party that received only just four percent of the vote in October, Añez was handpicked by the military to become the new president. A strongly Christian conservative who described the country’s indigenous majority as “satanic,” she arrived to take her new place in government clutching an oversized bible. She enjoyed the support of the country’s elite, the U.S. government, and the entire spectrum of corporate media, who cheered the events as they happened. The new administration immediately began to suppress and criminalize dissent, including massacring protesters who objected to the takeover. Despite leading in the polls, the MAS have been suppressed, with many of their leaders jailed or facing dubious charges. Morales himself faces life in prison for “terrorism” if he sets foot in his country again.

Añez has also overseen the selling off of the country’s national resources, including in the hydrocarbon industry, and has completely reoriented its foreign policy to align with the United States. She has also begun working with the IMF, taking out a $327 million loan in April. The U.S. government strongly backed Añez from the beginning; three days after the coup the State Department released an official communiqué “applauding” her for “leading her nation” through a “democratic transition.”

The stated reason for the postponement of the elections is the country’s continued inability to deal with the coronavirus pandemic. Supreme Electoral Tribunal President Salvador Romero said the move was necessary to keep Bolivia’s hospitals and cemeteries from collapsing under the strain of the increased deaths. “This election requires the highest possible health security measures to protect the health of Bolivians,” he said. One reason why the country’s medical system is under such pressure is that Añez expelled hundreds of Cuban doctors working primarily with the country’s poorest people, leading to closures of hospitals and health clinics. While Bolivia has officially reported 65,000 cases and 2,407 deaths, some believe those figures could be an underestimate. This week, police said they recovered 420 dead bodies from streets, vehicles and homes in La Paz and Santa Cruz. In June, Añez herself tested positive for COVID-19.

In response to the delayed elections, Bolivian trade unions have given the government 72 hours to reverse the decision, threatening “indefinite mobilizations” to restore democracy. Thus, it appears that even after eight months of constant political struggle, tensions could be about to be increased once again.

Alan MacLeod is a Staff Writer for MintPress News. After completing his PhD in 2017 he published two books: Bad News From Venezuela: Twenty Years of Fake News and Misreporting and Propaganda in the Information Age: Still Manufacturing Consent.

July 26, 2020 Posted by | Civil Liberties, Economics | , | Leave a comment

‘Very serious threats’: US reportedly ramps up pressure on Nord Stream 2 contractors

RT | July 26, 2020

The US government has made further attempts to force European firms to ditch the Russian-led Nord Stream 2 gas pipeline project, Welt am Sonntag reported, citing people familiar with talks on the issue.

According to the newspaper, officials from US Department of State, the Treasury Department, as well as the Department of Energy approached European contractors to make sure they fully understand the consequences of staying in the project. Up to a dozen officials reportedly held at least two online conferences with representatives of the firms in recent days.

Speaking in a “friendly” manner, the US side stressed that it wanted to prevent completion of Nord Stream 2, observers of the online talks said. “I believe the threat is very, very serious,” one of them revealed to the German outlet.

Those threats are consistent with comments by US Secretary of State Mike Pompeo last week, in which he warned that companies involved in the project had better “get out now” or risk facing penalties under Section 232 of the notorious Countering America’s Adversaries Through Sanctions Act (CAATSA).

Apart from Russia’s energy major Gazprom, which is developing the project, five European companies have joined. Those are France’s Engie, Austria’s OMV, the UK-Dutch company Royal Dutch Shell, as well as Wintershall and Germany’s Uniper.

Speaking to Welt am Sonntag, the latter called US attempts to undermine the “important infrastructure project” a clear intervention into European sovereignty.

Earlier this week, the US House of Representatives approved an amendment to the National Defense Authorization Act, meant to expand US sanctions on companies involved in installing Russia’s Nord Stream 2 gas pipeline. According to one of the sponsors of the bill, the measures can target companies facilitating or providing vessels, insurance, port facilities, or tethering services for those vessels, as well as to those providing certification for Nord Stream 2.

Both European businesses and government officials have repeatedly decried US attempts to meddle in European energy policy by sanctioning Nord Stream 2, with some even calling on Brussels to work on countermeasures.

Moscow has also lambasted Washington’s move, calling it unfair competition. Earlier this week, presidential spokesman Dmitry Peskov said that Russia will develop a new strategy for completion of the project if Washington proceeds with new punitive measures.

July 26, 2020 Posted by | Economics, Malthusian Ideology, Phony Scarcity | , | Leave a comment

Fossil Fuel “Subsidies” In The UK

See the source image

By Paul Homewood | Not A Lot Of People Know That | July 25, 2020

It has often been claimed that the UK is one of the leading subsidisers of fossil fuels in Europe. But I have always had great difficulty in getting hold of the actual numbers which form the basis of such claims.

Fortunately, Bruce Everett’s study, which I published earlier, includes a full spreadsheets of his workings, including detail of the OECD’s estimation of subsidies. Detail is here.

The following table summarises what the OECD call subsidies in the UK:

OECD Fossil Fuel Subsidies 2015 £m
Tied Oil Scheme 1205
Reduced Rate of VAT 4249
North Sea Tax Breaks 137
Exemption from CCL 727
Inherited Coal Liabilities 232
Total 6550
  • The tied oil scheme essentially applies to oils which are not to be used for fuel, for instance lubrication. This cannot be regarded as a subsidy for fossil fuel, as it merely applies the same tax treatment as alternative products, such as synthetic oils.
  • Reduced rate of VAT mainly applies to the rate of 5% which is charged to domestic users of gas and power. Again, this is not a fossil fuel subsidy, or even taxation foregone, as it applies to all sources of power including renewables. There is no law or precedent that says energy should be taxed at the full rate of 20%, and many other goods are zero rated, as energy used to be.
  • North Sea oil tax breaks are not subsidies either – they simply define what expenses are allowable and when they can be claimed against corporation tax. Such breaks are common across many industries, and even after allowing for them, overall corporation tax rates on oil and gas producers remains substantially higher than other businesses.
  • Exemption from the Climate Change Levy – businesses pay the levy on purchases of electricity, gas and coal, but there are certain exemptions, such as use in CHPs, non fuel use and not used in the UK. Also intensive energy users can claim partial exemption if they sign Climate Change Agreements, committing them to reducing emissions of CO2. The bottom line, of course, is that the CCL is an extra tax on fossil fuel use, so any “exemption” cannot be regarded as a subsidy.
  • Finally, inherited coal industry liabilities. When the coal industry was privatised in the 1990s, there were massive liabilities outstanding dating back decades, for instance for workers’ compensation claims and environmental clean ups. As part of the sale, the state retained responsibility for these liabilities. Once again, these are not “subsidies”, merely a cost associated with coal production many decades ago.

Bottom line is that there are no subsidies for fossil fuels in the UK.

July 25, 2020 Posted by | Deception, Economics | | Leave a comment

Nord stream-2 Completion of Nord Stream 2 to Cut Europe Gas Prices by 25%, Consulting Company Says

Sputnik – 25.07.2020

European prices for natural gas would drop by about one quarter if the Nord Stream 2 pipeline connecting Russia to Germany were completed, the consulting firm Wood Mackenzie said in a report on Friday.

“If Nord Stream 2 remains unfinished, European benchmark TTF gas is expected to average about $4 per million British Thermal Units next year. But if the project can be completed as its backers hope early in 2021, then the average TTF price that year could drop to about $3, we estimate”, the report said.

TTF, or Title Transfer Facility, refers to a benchmark price for gas in Europe based on a virtual trading exchange in the Netherlands.

Lower prices would mean higher gas consumption in Europe, in part because of coal to gas switching for power generation. But some of the increase in imports from Russia would come at the expense of US liquefied natural gas exporters, the report said.

Russian gas exports to Europe are expected to be about 176 billion cubic meters next year, up from 168 billion cubic meters this year. With Nord Stream 2, Russia’s exports next year could be about 27 billion cubic meters higher at 203 billion cubic meters, the report added.

Russian natural gas has been crucial to powering the European economy in the decades since the collapse of the Soviet Union.

However, the United States is eager to promote exports of liquefied natural gas to compete with Russia, according to US and European officials.

July 24, 2020 Posted by | Economics | , , | Leave a comment

Study Finds Fossil Fuels Aren’t Subsidized; They’re Overtaxed

Wind and solar power are held back by technology, not unfair competition

CO2 Coalition | July 23, 2020

Arlington, Va., July 23, 2020. The CO2 Coalition of 55 climate scientists and energy economists today released a detailed economic study of subsidies and taxes on fossil fuels in the United States, and internationally. Written by international energy expert and Coalition member Dr. Bruce Everett, a professor of international business for 17 years at the Fletcher School of Tufts University, the 26-page White Paper is titled Do Government Policies Favoring Fossil Fuels Hamper the Development of Wind and Solar Power?

While advocates of wind and solar power often claim that these sources of power are disadvantaged by billions, even trillions of dollars in fossil fuel subsidies, the Coalition White Paper finds that the net effect of government policies is to raise, rather than lower, the price of energy from fossil fuels.The study concludes that: “Although most countries do offer some subsidies to fossil fuels, the massive taxes imposed by most governments are generally far higher, resulting in a net increase in the price of fossil fuels. Taking into account all taxes and subsidies, fossil fuels in the United States are overtaxed $50 billion per year. The 28 other largest industrial democracies are overtaxed $363 billion, and the BRIC countries (Brazil, Russia, India, and China) are overtaxed $104 billion. The primary exceptions to this rule are found in oil-producing developing countries that offer their citizens heavily subsidized motor fuels but are not likely candidates for renewable energy.”

Dr. Caleb Stewart Rossiter, the CO2 Coalition’s executive director, said, “Wind and solar power, both in the United States and internationally, are heavily subsidized by mandates for utilities to purchase their costly electricity, as well as tax credits and public financing. It is renewables, not fossil fuels, that have the competitive advantage when it comes to government intervention in the energy markets. Despite this advantage, wind and solar remain in the single digits as a share of American and global energy consumption. As a previous CO2 Coalition White Paper, The Social Cost of Carbon and Carbon Taxes, showed, their true cost is four times that of fossil-fueled power. They are not ready for prime time yet, but that’s because of technological challenges, not wildly-exaggerated fossil fuel subsidies.”

This White Paper and its related excel calculations can be found here.

July 24, 2020 Posted by | Economics, Malthusian Ideology, Phony Scarcity | | Leave a comment