Climate Hysteria Threatens Germany's Car Industry
In this newsletter:
1) German Ministers Who Don’t Enforce Green Policies May Face Jail Sentences
AFP, 2 September 2019
2) Climate Hysteria Threatens Germany's Car Industry
Yahoo Finance, September 2019
3) Far-Right AfD Surges in Two East German State Elections Thanks to Young Voters
Money Maven, 2 September 2019
4) Merkel Faces Left-Wing Climate Pressure
Reuters, 3 September 2019
5) Climate Change Could Be A Problem In 2020 ... For Democrats
Politico, 3 September 2019
6) Surprise: Ireland May Renege On Carbon Tax Payback Pledge
The Times, 1 September 2019
7) Electric Car Sales Fall For First Time After China Cuts Subsidy
Bloomberg, 3 September 2019
Full details:
1) German Ministers Who Don’t Enforce Green Policies May Face Jail Sentences
AFP, 2 September 2019
The European Court of Justice (ECJ) will start examining on Tuesday whether German courts should give prison sentences to politicians who don’t enforce bans on heavily-polluting cars.
The case stems from a long-standing dispute between environmental activists and the state government of Bavaria. The environmental group Deutsche Umwelthilfe (DUH) is trying to force the Bavarian government to implement measures against air pollution in the state capital of Munich, where nitrogen dioxide levels exceed EU limits.
In 2014, a Munich court demanded a plan of action from the state government for a city ban for diesel cars. Environmental activists claim the Bavarian government is ignoring this ruling on purpose.
“We are asking that air pollution limits be respected,” DUH chairman Juergen Resch told AFP.
November last year, the Bavarian higher administration court referred the case to the ECJ because “high-ranking political figures” had “made it clear, both publicly and to the court, that they would not fulfil their responsibilities.”
The court added that a 4,000 euro fine had been “inefficient” and wanted the ECJ to advise on the legality of imposing a prison sentence to MPs who didn’t enforce the ban.
The ECJ’s decision though not legally binding could have serious implications for the Bavarian sister-party of Chancellor Angela Merkel’s ruling Christian Democrats who oppose the bans.
Ugo Taddei, a clean air lawyer at NGO ClientEarth, said the ECJ hearing was important because it would “give a clear interpretation, a clear indication to German courts about what they need to do when they run into a situation like this.”
However, even if the ECJ rules that MPs can be given prison sentences, it will be up to Bavarian courts to decide what to do.
Full story
2) Climate Hysteria Threatens Germany's Car Industry
Yahoo Finance, September 2019
The Frankfurt International Motor Show (IAA) opens its doors to the public next week in a time of unprecedented challenges for the automotive industry.
Bernhard Mattes, president of the German Association of the Automotive Industry (VDA), spoke of the troubles facing the sector and the impact of industry changes on the famous car show in a press conference in Frankfurt on Monday.
Mattes said that the VDA had brought forward its annual press conference in view of the current situation. “This IAA — and the social and political environment — are very different from previous events,” he said. “Demonstrations have been planned to coincide with the IAA. We have offered to enter into a dialogue with these NGOs.”
Environmental organisations and activists, including the Fridays for Future movement, are planning demos during the first weekend of the show on 14 September to demand an end to combustion engine cars, especially big, polluting SUVS.
The IAA, which is organised by the VDA, is among the world’s largest car shows and takes place every two years. Chancellor Angela Merkel will open the show on 12 September.
Mattes said today that the car industry is “undergoing a huge process of transformation” spurred by three big challenges: climate protection and new CO2 emissions targets; digitisation and automation; and global trade disputes and protectionism.
The VDA president warned that the three biggest car markets, the US, China, and the EU, are facing a slowdown in growth, and urged policy-makers in Germany to take urgent steps to bolster the country’s competitiveness, criticising Germany’s high corporate taxes and energy levies.
Full story
3) Far-Right AfD Surges in Two East German State Elections Thanks to Young Voters
Money Maven, 2 September 2019
CDU held on to Saxony and SPD held Brandenburg but a huge surge for AfD gave them second place in both elections.
Brandenburg
SPD: 26.2%
AfD: 23.5%
CDU 15.6%
Saxony
CDU: 32.4%
AfD: 27.9%
SPD: 7.7%
Coalition math will be difficult. All the parties rule out working with AfD, but it will become the top opposition party with increased rights.
Myth Shattered
AfD topped age groups 18-29 and 30-44 in Saxony.
AfD came in a close second in age group 45-59.
Only those 60 an over voted strongly for CDU. Even then, AfD was in second place.
So much for the theory that the far-right is a party for older voters.
Full post
4) Merkel Faces Left-Wing Climate Pressure
Reuters, 3 September 2019
BERLIN (Reuters) - German Finance Minister Olaf Scholz on Monday urged Chancellor Angela Merkel’s conservatives to support far-reaching steps on climate protection, warning that failure to do so would raise questions over their coalition’s right to rule.
Senior members of Scholz’s co-ruling, center-left Social Democrats (SPD) and the heads of Merkel’s CDU/CSU conservative bloc were due to meet behind closed doors on Monday to prepare a comprehensive package of climate protection measures that are likely to burden the federal budget massively.
A senior government official told Reuters last month that the Finance Ministry was toying with the idea of issuing new debt in the form of “green bonds” which could help finance the costly climate protection package.
“We need a big leap in climate policy if, as a government, we want to continue to have the authority to lead the country,” Scholz, deputy SPD leader, said in an interview with Der Spiegel magazine.
“Thinking small on climate protection does not help. We have to get away from a policy where we do not dare to do the right thing just because we are too anxious about possible reactions.”
The coalition partners held off a surge in far-right support in two state elections in eastern Germany on Sunday, averting an immediate crisis for the ruling alliance.
But the populist Alternative for Germany (AfD) came second in both Saxony and Brandenburg as it harnessed voter anger over refugees, the planned closure of coal mines in the formerly communist east and the government’s policy in general….
As the economy teeters on the brink of recession and borrowing costs have turned into premiums, SPD parliamentary leader Rolf Muetzenich joined the growing chorus of voices who want Berlin to bury its self-imposed balanced budget rule.
Full story
4) Climate Change Could Be A Problem In 2020 ... For Democrats
Politico, 3 September 2019
Climate change could be a winning long-term political issue for the Democrats—but in 2020, it could also threaten the party from inside and out.
Elissa Slotkin has learned that climate change is both a national emergency and a political opportunity. As an assistant secretary of defense under President Barack Obama, she helped lead the Pentagon’s first study of how climate change threatens U.S. military bases. Then as a Democratic candidate for Congress in 2018, she attacked her Republican opponent for questioning the scientific consensus on climate change—and that’s one reason she’s now a Democratic member of Congress.
“We talk about the weather all the time in Michigan, and we all know it’s getting weird,” she says. “To most people, straight-out denial feels extreme.”
But even though Slotkin has shown how the climate crisis can be a winning issue, she’s not on board with the most prominent progressive effort to make it a national issue, the Green New Deal, backed by her more famous House classmate Rep. Alexandria Ocasio-Cortez. She thinks it’s too radical, too polarizing, a gift to President Donald Trump and other Republicans who want to portray Democrats as socialists. “My district is very worried that Democrats are lurching to the left,” she says. “I know AOC’s face will be on every ad against me in 2020.”
Slotkin doesn’t see why a plan to fix the climate needs to promise universal health care and a federal job guarantee, and she doubts a lefty wish list disguised as an emergency response will play well in her suburban Michigan swing district, which Trump won by seven points.
“I’m a pragmatist, and I represent a lot of pragmatic people,” says Slotkin. “Why say we need massive social change to reduce emissions? How does that build consensus?”
Full story
5) Surprise: Ireland May Renege On Carbon Tax Payback Pledge
The Times, 1 September 2019
Ireland’s mandarins block carbon tax payback, despite Ireland’s Prime Minister pledge last year following violent yellow vest protests in France against higher fuel costs driven by a carbon tax.
The carbon tax refund was seen as a way to avoid the civil unrest seen over the levy in France JULIEN MATTIA
The Department of Finance is set to oppose a plan to refund carbon tax in direct payments to Irish households despite fears of public resistance to the new charge. Senior Merrion Street officials are concerned at the lack of funding for the climate action plan launched in June and the complexity of refunding the tax in an even-handed way, government sources said.
A consultation process run by the Department of Finance this summer has come down strongly in favour of channelling the tax towards building a charging infrastructure for electric vehicles and retrofitting homes with “high-spec” insulation. A majority of the 66 submissions from industry, academia, state agencies and the community and voluntary sector were opposed to the “cheque-in-the-post” or dividend system to offset the impact of carbon tax increases.
The Green Party has estimated the rebate could be worth €85 per citizen next year if the carbon tax was doubled from €20 to €40 per ton in next month’s budget. […]
The taoiseach appeared to favour the dividend system last year following violent yellow vest protests in France against higher fuel costs driven by a carbon charge. In November, he told the Dail: “The model I personally favour is that which prime minister [Justin] Trudeau is pursuing in Canada. I had a chance to speak to him about it around two weeks ago . . . where the money is given back to people in the form of tax credits and welfare.”
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6) Electric Car Sales Fall For First Time After China Cuts Subsidy
Bloomberg, 3 September 2019
Global electric-car sales fell for the first time in modern history in July after China scaled back purchase subsidies, highlighting the role government assistance is having on the burgeoning market.
Monthly sales worldwide fell 14% to about 128,000 plug-in passenger electric vehicles, Sanford C. Bernstein said in a report Tuesday. Sales declined in China and North America, while rising in Europe.
Growth in China, the biggest producer and market for electric vehicles, is slowing down as a reduction in EV subsidies and a cooling economy weigh on consumers’ buying decisions. China’s government scaled back funding for individual purchases of new-energy vehicles starting June 26 to encourage carmakers to focus on product innovation.
While electric vehicles account for just a few percent of the car market, automakers are betting on the segment for future growth. Slowing demand for gas guzzlers has plunged automobile markets worldwide into a decline, led by a historic drop in China.
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The London-based Global Warming Policy Forum is a world leading think tank on global warming policy issues. The GWPF newsletter is prepared by Director Dr Benny Peiser - for more information, please visit the website at www.thegwpf.com.
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