Utter Farce: Carbon Tax Used to Fund New Coal Power Stations.

Ask any global warming fanatic what the worst thing in the world today is, the one thing that is driving global warming, and chances are that they’ll say its coal fired power stations. Their solution to this so-called menace is carbon emissions trading – effectively a “carbon tax” on the end consumer – to penalise coal and oil and drive the move to clean, renewable energy. Sure, its making electricity dearer and dearer, hitting the most vulnerable in society hardest, but the money raised from carbon emissions trading is going to fund all those windmills and solar power plants that will save the planet, right?

Well, not quite. As German newspapers have revealed this week, the German government is diverting hundreds of millions of Euros raised from the carbon tax to fund the construction of new coal-fired power plants to supply desperately needed electricity now that nuclear is being phased out. As a website quoting the Berliner Zeitung reported:

The German government wants to encourage the construction of new coal and gas power plants with millions of euros from a fund for promoting clean energy and combating climate change.

Annual funding for the new plants could total more than €160 million per year between 2013 and 2014 alone, the Berliner Zeitung newspaper reported on Wednesday.

Over the next decade, then, hundreds and hundreds of millions of euros raised from the carbon trading scheme will be used to help Germany build new coal fired power plants, which is particularly ironic as coal is one of the cheapest sources of power, and doesn’t actually require any subsidies. This utter farce is being justified on the grounds that this will help make the new coal plants more efficient, now that nuclear power is being phased out, following the Fukishima scare in Japan.

Even better, Der Spiegel reports that the planned switch-off of nuclear is already running into problems with many of the reactors already shut down will be needed this winter as freezing cold weather is again predicted to strike. As the report notes:

. . . amid concerns that supply shortages this winter could result in temporary blackouts, Germany’s Federal Network Agency on Tuesday indicated that one of the seven reactors shut down in the immediate wake of the Fukushima nuclear disaster in Japan could be restarted this winter to fill the gap.

So, let’s put this all in perspective: a tax designed to discourage using coal to generate electricity is being used to fund new coal-fired power stations. The nuclear plants which could provide electricity have been closed down for no good reason, but in light of global warming’s increasingly Arctic winters they’ll need to be started up again. Is this making sense to anyone out there? Anyone at all?

23 responses to “Utter Farce: Carbon Tax Used to Fund New Coal Power Stations.

  1. Nope – makes no sense at all.

    But then neither does a carbon emissions trading scheme.

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  3. Pingback: Germany Plans Boom in Coal-Fired Power Plants…while we close ours « No Carbon Tax Website

  4. Dominic is right. The other downside is the increase in the power of the State now further screwing up what little rationality still exists in our markets.

  5. Alex the skeptic

    Isn’t it like the a person’s left hand donating blood to his right hand? LOL.

  6. Ulrich Elkmann

    Of course it is making sense to many, many people – those writing the op-ed pieces puffing the wisdom of Our Leaders, party members toeing the line, basically anyone with a vested interest in AGW, since pointing to the Empress’s nakedness would cast a baleful light on the whole enterprise. Their justifications may make zero sense to the likes of us, but we are, sad to say, dialectically retarded. It makes sense just the way the Hitler-Stalin pact make good sense to respective party members at the time (on both sides).

  7. Ulrich Elkmann

    Actually, pretending to make sense out of this should fall right into the area of Frau Merkel’s expertise – her first paid job was working for the FDJ (“Freie Deutsche Jugend/Free German Youth – the official socialist youth movement of the German Democratic Republic and the Socialist Unity Party of Germany” – Wikipedia) as a secretary in the Department for Agitation and Propaganda. One of the most visible signs of modern consumerism are the ever-increasing lists on packages and bottles so that customers might have an idea of which ingredients went into the mix and where they came from, but in politics this principle still seems to be viewed as being uncavalierly.

  8. On and on goes this ‘economic’ conspiracy. Create a tax, shut down utilities, use the tax to reopen them, the ideal green socialist environment.

    I pity those that worked hard to make something of themselves in life, have wealth that was hard earned, now being slugged by these tree hugging morons!

  9. Germans move in cycles (and on cycles too, I know) but the cycles I sprechen of hier sind economish, know what I mean. It’s time to deflate the German Bubble and they are off to a fantastic start once again. Let me do some quick math, Germans like math,…
    1964-1914=50, and
    1964+ 50 = 2014, so
    Yhep! I won’t be long, 2014 is significant to Germans. It’s time to Dive! Dive! Dive! the old U-Boot once again.

    There’s an old song they sing, something, something, uber/unter alles!

  10. I can’t make much sense of it either, but it would seem they are more afraid of losing political power than they are of AGW.

    I got the impression that the closing down of the nuclear power stations was a knee jerk response to public opinion after Fukushima, but they (the government) would be in real trouble with the public if there were to be power cuts this winter.

    Perhaps the explanation is that they are on the horns of a dilemma.

  11. It makes complete sense. I read weeks ago (i think on Steyn) that the germans were going to use carbon profits to build coal plants. When i looked it up i found that many of the proposed plants were running into problems and were not being approved. Enter the Fukushima ‘disaster’ and Germany, always a pretty stoic country panics and quickly decides, against all common sense to shut down its nuclear industry. Of course this means that all of the coal plants, includung those previously cancelled or posponed will be absolutely necessary now. Is this making sense yet (in an admittedly conspiracy theory kind of way)?
    The end result is that the German government did an end run around the greens of the EU. They get their coal power plants, and I will not be surprised if it turns out that those nuclear plants they fire up in the winter are still running when the coal plants are all on line. An abundance of cheap energy for the german industrial complex, and maybe even some euros to be made selling power to the greeks and albanians.

    • Convoluted, but it makes a certain sense when you know what sort of people are involved!

      I know they’re devious, but are they that clever?

    • You know what, I think I’m not going to buy any more German cars.

  12. Germans see fusion power coming by mid century.
    Biding time with preferred and plentiful coal power.

  13. Ulrich Elkmann

    Fusion power has always 50 years away, at any time in the last sixty years. The German’s don’t see it on the horizon, otherwise they would be up in arms banning it.
    Mathematics: Germans actually detest all branches of mathematics (engineers being the exception); no “German Exception” in this regard. If 1964 has any significance, it is that Ludwig Erhardt, chief designer of the Postwar recovery “Wirtschaftswunder”, succeeded Adenauer as chancellor and proved to be hopelessly incomptent in that regard: Parkinson’s law at work.

    • And economics: Most Germans actively try to not understand any economics at all. The German media leads by example in this regard.

  14. MOST (not all) Germans are end-time believers, doom-mongers, nihilists, warmists, and it’s without a doubt perfectly clear to them that every of our actions destroy the planet (but it doesn’t matter much as the planet will recover once we’re all dead) and that we should pay more taxes (showing some solidarity with whoever is less well off than we). Today as i explained the Svensmark hypothesis to a colleague as we were walking for lunch (and summer just hopped into a jet airliner heading south, making way for autumn) i noticed the guys walking behind me also started talking about climate stuff, one of them saying “Today, there’s probably nobody anymore who doubts that CO2 leads to global warming…”. (in German). You can’t make it up.

    This largely nihilist population considers itself smarter than the politicians; way smarter. So when Merkel tries to re-assess her priorities and tries to make sure there’s some electricity she’s actually acting smarter, more pragmatic and less nihilist than most of the electorate. She also needs the tax revenue…

  15. Actually I am sticking with my hypothesis, since, like all good climate models it takes what has happened and adjusts the inputs to fit. I just cannot see any other reason why the germans (math aptitude and nihilism aside) would decide to shutter their nuclear powere plants without having any substitute power sources. At the very least, there had to be an idea that they could use this to ease to coal plants in.

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    That was the crowning irony to the other three I posted today.

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