The transition to the Green Economy will provoke chain reactions not only in the way energy is produced, stored, and channeled but also in the way that any type of activity will now be taxed. The EU is leading the way, followed by the US.
China, realizing that if it does not implement the green economy, will find itself following the two largest economies in the world and given the tariffs imposed on its products that are not produced by the green economy.
by Thanos S. Chonthrogiannis
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The EU is a leader in the green economy
The EU has set ambitious goals through the green economy. The aim is to reduce pollutants to zero air pollutant balance.
This will be achieved by changing the eating habits of European citizens (minimal meat consumption or consumption of synthetic meat), the way and means of moving them (cessation of fossil fuel use) and given that most of the carbon dioxide is produced by burning fossil fuels, while nitric oxide and methane from agriculture and livestock.
The tax burden on European citizens will be used by the Commission as a tool to adapt them to a “green” way of life. Under the Emissions Trading Scheme, a cost will be imposed on the purchase of pollution rights that the polluter will have to purchase from the state.
The emissions trading system is not new. It has been applied to industries for several years, forcing companies to pay for their carbon dioxide emissions (unit cost per ton).
Given the effectiveness of this system, the Commission proposes through its twelve proposals not only the increase in costs and the tightening of thresholds but also the extension of this mechanism to air transport and maritime transport but also to the heating and use of cars with internal combustion vehicles.
The Commission has set a target of banning cars with internal combustion engines by 2035.
But this will be an additional tax, where the lower income classes will find it difficult to afford it given the reduction in their disposable income.
Germany is already piloting a € 25 tax on every ton of petrol, diesel, heating oil and gas. This measure will later be implemented throughout the EU.
Revenue from this additional tax will be directed to the European Recovery Fund, the funds of which the Commission will borrow from the capital markets and the resulting debt will be distributed proportionally to all EU member countries.
But the issue that arises is the reactions that will be provoked in the societies of the member countries due to the shameful taxation that will have to be absorbed by the budgets of European households.
The new technologies that will create and the new industries that will lead the economies of the countries
By developing and optimizing the new technologies that will be used to produce all those products that will have zero carbon dioxide emissions, they will create new businesses as well as new industries in which these companies will lead.
These new technologies include application in the production, storage, distribution and disposal of hydrogen, removal of carbon dioxide from the atmosphere and its capture in the subsoil.
Companies that will build engines for cars, airplanes, ships using hydrogen as fuel, underground gas storage plants, synthetic meat production in the laboratory, Production of non-nitrogen fertilizers, etc. will cause tectonic changes in the business field, giving the baton to new protagonists and causing the disappearance of any companies if they do not adapt quickly to developments.
These findings have already begun and are evident from the massive and growing type of mutual fund investments in companies that have adopted the ESG (Environment, Social, Governance) criteria in practice. From 2019 until today, the mutual funds have invested in companies with ESG more than $350 billion.
Which companies benefit from the green transition
1. The companies of energy, aluminum, cement, steel, the automobile industries that will quickly make the necessary changes and adaptations in the way of their production.
2. Companies that will capture carbon dioxide from the atmosphere, and store it in the ground, producers, storage, distribution, and disposal of hydrogen as fuel.
3. The wind farms.
4. In the construction sector the companies that use ecological materials in the renovations of buildings and specialize in the energy conversion of buildings.
5. Green transport (road, rail, sea, air).
6. Companies in the production of solar and wind energy equipment.
7. Companies active in the production of synthetic meat, organic agricultural and livestock products.
8. Companies in the production of biofuels.
