Examining the oil market’s function, considering both its short-term dynamic movement and the potential for long-term transitions.
The Saudi Aramco IPO offers a unique opportunity for climate-based transparency. Yet, despite having some of the cleanest oils, transparency is unlikely without pressure from investors and exchanges.
More power to the states to price carbon can support emissions reduction from human activities that accelerate climate change.
Taxing climate pollution instead of productivity will be a societal breakthrough.
Innovative and continuous support will be needed to manage the effects of a sustained decline in oil prices, especially in oil-producing and developing countries.
A smart carbon tax differentiates among the different chemical entities called “oil,” accounts for GHG emissions along the entire oil supply chain, and includes byproducts that do not fuel transport.
Because of the growing chemical and geological diversity of the new oils, the lack of alternative liquid fuels for transportation, and the size and global scope of oil production and trade, a tax is most needed in the oil sector.