Resolution number: 06
Title:

Use of Energy – compensation of damages

Submitted by: D66 (Netherlands) and Centerpartiet (Sweden)

The Congress of the Liberal International, convened in Abidjan, Côte d’Ivoire, on 20 October 2012

Recalling

• LI’s previous resolutions on Climate Change (2010), Eco-Friendly Economy (2009) and Carbon Emissions and Global Climate Agreements (2008)
• that May 2012 was the 327^th consecutive month in which global temperature exceeded 20^th century average
• Oil, coal and gas still account for more than 80% of the world energy production – and global energy use is growing.

Notes that:

Individual responsibility stretches into the future, ensuring future generations’ continuous access to resources and a clean environment;

Liberals reject a closed energy market in which freedom is limited by the artificial competitive advantage of the fossil fuel industry: a result of the industry’s freedom to emit their main waste without paying for the involved damages;

Individual freedom should only be restricted if it causes harm to others. The limits, in the case of global warming, should be set by objective measures based on scientific studies and not by political negotiations.

75 % of the world’s oil is concentrated in the OPEC countries, and the oil market is dominated by a few, large companies;

Subsidies that encourage consumption of fossil fuels increased to over $400 billion in 2010 [1];

Only 8% of the billions spent subsidising fossil fuel consumption went to the poorest 20% of the population [2]. Fossil fuel subsidies are hence socially regressive and mostly benefit medium to high income households;

Low fossil fuel prices disturb market transparency and halt incentives to transition to renewable energy sources;

Believes that:

If the world remains dependent on fossil fuels we also remain dependent on a handful of major, often undemocratic, producers;

A phase-out of fossil fuel subsidies, which are currently artificially low, will be helpful to internalize the environmental and social costs of fossil fuels.

Urgently calls upon its members:

To commit to a phase out of fossil fuel subsidies that undermine sustainable development;

Install carbon taxes for fossil fuel carbon emissions that will be used to compensate the damages on the environment, people and businesses;

Promote fair energy prices that will result in more realistic fossil energy prices as well as more competitive clean energy prices;

Be themselves frontrunners in leveling the playing field for renewable energy sources.

[1] According to the International Energy Agency (IEA)

[2] Estimates published by the International Energy Agency (IEA)