Day: December 5, 2023

Countries need to increase their taxes on alcohol and sugar-sweetened beverages, the World Health Organization said Tuesday, saying too few states were using tax to incentivize healthier behaviors.

After studying taxation rates, the WHO said the average global tax rate on such “unhealthy products” was low, and hiking taxes could result in healthier populations.

“WHO recommends that excise tax should apply to all sugar-sweetened beverages [SSBs] and alcoholic beverages,” the U.N. health agency said in a statement.

Excise taxes target particular goods and services.

The WHO said 2.6 million people a year die from drinking alcohol, while more than eight million die from having an unhealthy diet.

“Implementing tax on alcohol and SSBs will reduce these deaths,” it said.

It would not only help cut down use of these products but also give companies an incentive to make healthier products, it added.

The WHO said that although 108 countries do impose some taxation on SSBs, globally, excise taxes on average represent just 6.6 percent of the price of a soda.

Half of those countries also tax water, the WHO noted — something not recommended by the U.N. agency.

“Taxing unhealthy products creates healthier populations. It has a positive ripple effect across society — less disease and debilitation and revenue for governments to provide public services,” said Rudiger Krech, the WHO’s health promotion director.

“In the case of alcohol, taxes also help prevent violence and road traffic injuries.”

The Geneva-based WHO on Tuesday released a manual on alcohol tax policy and administration for its 194 member states.

It said minimum pricing, combined with taxation, could curb consumption of cheap booze and reduce drink-related hospitalizations, deaths, traffic violations and crimes.

“A significant body of research has demonstrated that people who engage in heavy episodic drinking tend to drink the cheapest available alcoholic beverages,” it said.

Some 148 countries apply national excise taxes on alcoholic drinks.

“However, wine is exempted from excise taxes in at least 22 countries, most of which are in the European region,” the WHO said.

Globally, on average, the excise tax in the price of the most sold brand of beer is 17.2 percent, while for the most sold brand of the most sold type of spirits, it is 26.5 percent, the organization claimed.

“A pressing concern is that alcoholic beverages have, over time, consistently become more affordable,” said WHO assistant director-general Ailan Li.

“But increasing affordability can be curbed using well-designed alcohol tax and pricing policies.”

The manual said the drinks industry often argues that alcohol taxes hit the poorest hardest — but said this ignores the “disproportionate harm per liter for alcohol consumers in lower socioeconomic groups.”
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Countries at the COP28 climate conference are considering calling for a formal phase-out of fossil fuels as part of the U.N. summit’s final deal to tackle global warming, a draft negotiating text seen on Tuesday shows.

The proposal is set to spark heated debate among the nearly 200 countries at the two-week conference in Dubai, with some Western and climate-vulnerable states pushing for the language to be used and many oil and gas producers keen to leave it out.

Research published on Tuesday showed global carbon dioxide emissions from burning fossil fuels are set to hit a record high this year, fueling concerns among scientists that efforts to combat climate change are not enough to avert its worst impacts.

The draft of what could be the final agreement from COP28, released by the U.N. climate body on Tuesday, proposed “an orderly and just phase-out of fossil fuels” which if adopted would mark the first global deal to end the oil age.

On the COP28 main stage, the CEOs of several major energy firms argued in favour of oil and gas, highlighting their progress in areas such as cutting the greenhouse gas methane.

“We are big guys and we can do big things. We can deliver results and we will have to report them very soon,” said Jean Paul Prates, CEO of Brazil’s state-run oil company Petrobras. “The energy transition will only be valid if it’s a fair transition,” he added.

At least 2,400 fossil fuel lobbyists registered for this year’s summit, an analysis of U.N. registration data published by Kick Big Polluters Out showed, outnumbering the delegates from the 10 most climate vulnerable countries combined.

Climate activists staged several small protests against the presence of the fossil fuel industry.

The Marshall Islands, meanwhile, unveiled a national plan to adapt to rising sea levels, a recognition that the impacts of warming are already hitting its shores.

“While we hope for a world where the world fulfils the promise of the Paris Agreement to contain climate change, as an extremely climate vulnerable country we need to be realistic and honest about the difficult path ahead,” said Kathy Jetnil-Kijiner, the country’s climate envoy.

Negotiating text

The draft text for a COP28 final deal includes three options for dealing with fossil fuels.

The first is “an orderly and just phase-out”. In U.N. parlance, the word “just” suggests wealthy nations with a long history of burning fossil fuels would phase out fastest.

The second calls for “accelerating efforts towards phasing out unabated fossil fuels”. And a third would be to avoid mentioning a phase-out at all.

The United States, the 27 countries of the European Union and climate-vulnerable small island states are pushing for a fossil fuel phase-out to drive the deep CO2 emissions reductions scientists say are needed this decade.

Even so, none of the world’s major oil and gas-producing countries have plans to eventually stop drilling for those fuels, according to the Net Zero Tracker, an independent data consortium including Oxford University.

“We’re not talking about turning the tap off overnight,” German Climate Envoy Jennifer Morgan said. “What you’re seeing here is a real battle about what energy system of the future we are going to build together.”

Big producers including Saudi Arabia and Russia have resisted past proposals for a phase-out.

David Waskow, director of World Resources Institute’s international climate initiative, said he does not think a COP28 outcome was possible without a clear mandate for moving away from global reliance on oil, gas and coal.

“I don’t think we’re going to leave Dubai without some clear language and some clear direction on shifting away from fossil fuels,” he added.

The draft text also includes language calling for the scaling up of carbon capture technology, which is likely to draw pushback from some countries worried such nascent technologies are being used to justify the continued use of fossil fuels.

Fossil fuel emissions rising

On the sidelines of COP28, U.S. special climate envoy John Kerry launched an international plan involving 35 countries to boost nuclear fusion, a nascent technology that would seek to harness the intense process that powers the sun.

“There is potential in fusion to revolutionize our world,” Kerry said.

Fusion is among a number of ambitious and sometimes unlikely ideas aimed at helping speed decarbonization.

Countries are expected to emit a total 36.8 billion metric tons of CO2 from fossil fuels in 2023, a 1.1% increase from last year’s record, according to the Global Carbon Budget report by scientists from more than 90 institutions.

The emissions performance pulls the world further away from preventing global warming exceeding 1.5 degrees Celsius above pre-industrial times, it said.

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