Tag Archives: carbon tax

The case for optimism in Tillerson’s State Department

Rex Tillerson, the former CEO of ExxonMobil, will win confirmation today as the next US secretary of state.

He stumbled and mumbled in a Texas drawl through hours of cringe-worthy hearings before the US Senate’s foreign relations committee.

He refused to label Russian president Vladimir Putin a ‘war criminal,’ and he dissembled about human rights abuses when asked about the Philippines under Rodrigo Duterte or about Saudi Arabia. Moreover, at times, Tillerson seemed to distance himself from Trump when he failed to commit to pull out of Iran’s nuclear deal, and Marco Rubio, the Florida senator who lost the Republican nomination to Trump last year, lectured Tillerson on human rights in Russia, Syria and around the world.

Nevertheless, former ExxonMobil CEO Rex Tillerson easily won confirmation yesterday by the full Senate, and he will succeed John Kerry as the next US secretary of state, despite the earlier misgivings of Rubio and several other hawkish Republican senators.

Say what you want about Tillerson, he’s never — to my knowledge — joked about an impending US invasion with the sitting Mexican president into Mexico to get the ‘bad hombres’ or hung up on the Australian prime minister after a wholly unprofessional rant about winning the election and trying to welch out of a prior US agreement.

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RELATED: Tillerson’s not a bad choice for State,
he’s just a bad choice for Trump’s administration

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But perhaps the most interesting thing about Tillerson’s nomination was that US president Donald Trump ultimately selected Tillerson and not Lee Raymond, Tillerson’s predecessor as ExxonMobil CEO. As between the two, Raymond is far more ‘Trumpier.’  He routinely denied either that climate change is man-made or that climate change is, in fact, occurring. Raymond presided over the massive efforts after the 1989 Exxon Valdez oil spill to improve the company’s safety record, and he successfully merged his company with Mobil. But he routinely flouted SEC rules on counting oil reserves and he also presided over a human rights fiasco in Aceh, then a separatist province in Indonesia.

By all rights, Raymond was always the alpha male to Tillerson’s beta male. After taking over the reins of ExxonMobil in 2005, Tillerson promptly acknowledged that climate change is a real threat and, after the Democratic Party took control of both the US congress and the presidency in 2009, even advocated for a carbon tax (instead of the more complicated, if more popular cap-and-trade legislation).

There’s no doubt that Raymond is exactly the kind of personality that Trump respects, and Raymond — even, one suspects, at the age of 78 — would have gone into Foggy Bottom ready to disrupt. By contrast, Tillerson is a life-long Texan Boy Scout and quintessential company man who spent his entire four-decade career at Exxon. While there are real doubts about whether Tillerson will succeed, one of the biggest is whether he can shift, after so many years, to such a very different role and such a very different bureaucracy.

In a more ‘normal’ Republican administration, under Rubio or Jeb Bush or Scott Walker or John Kasich, Tillerson might be a refreshing choice at State. Instead, the Trump administration’s inexperience and Trump’s odd conciliatory relationship with Putin have only highlighted Tillerson’s own lack of diplomatic experience and Russia ties.  More than any other administration in recent memory, the Trump administration is full of government outsiders with scant experience inside the executive branch. That’s true for Trump, but it is also true for the chief of staff Reince Preibus, for chief strategist Stephen Bannon, for national security adviser Mike Flynn. So another worry is Tillerson he might simply fade alongside so many other forceful personalities, including Trump himself, Flynn, Bannon and others.

That’s not to say Tillerson isn’t bright or capable. It’s clear, above all from Steve Coll’s indispensable 2012 book, Private Empire: ExxonMobil and American Power, just how knowledgeable and effective Tillerson was in negotiations around the world. At Exxon, Tillerson pursued a foreign policy designed to help his company’s interests and his shareholders, and that didn’t always line up with the interests of the US government’s foreign policy, most notably as his company chafed at economic sanctions in recent years against Russia. On at least two occasions, ExxonMobil got the better of Venezuela under Tillerson’s leadership, and Tillerson effectively sidelined the central Iraqi government in Baghdad to make a better deal with autonomous Kurdistan in the north. That’s above and beyond the more well-known ties between Tillerson and Putin over ExxonMobil’s Siberian oil deals, and navigating the longstanding relationships between his company and dictatorial oil-rich autocracies like Nigeria, Equatorial Guinea and Chad. (Coll’s book really is required reading for those who want to understand foreign policy in the Trump era).

Tillerson, it’s clear, knows his way around the international landscape — probably far more intimately than Trump himself, who has already gaffed his way across the globe in less than two weeks in the Oval Office. Continue reading The case for optimism in Tillerson’s State Department

Xi’s hard power trumps papal soft power on climate change

US president Barack Obama and Chinese president Xi Jinping arrive at Beijing's Great Hall of the People in November 2014 (White House).
US president Barack Obama and Chinese president Xi Jinping arrive at Beijing’s Great Hall of the People in November 2014 (White House).

Despite the Fellini-esque excitement that swept the American capital over Pope Francis’s first-ever trip to the United States, it’s the arrival of China’s president, Xi Jinping (习近平), this week that will have the broader impact on global affairs.vatican flagChina Flag Icon

While the pope invoked human rights when he spoke about the environment in spiritual terms at the United Nations General Assembly Friday morning, Xi was preparing to announce that China would initiate in 2017 its own national cap-and-trade program, giving teeth to a pledge for carbon emissions in the world’s most populous country to peak in 2030, declining thereafter, part of an ambitious bilateral agreement signed between the United States and China last year.

It’s hard to think of two actors in international affairs who reside more starkly on the spectrum of ‘soft power’ and ‘hard power’ more than the two men who visited Washington this week. Francis, nominally the head of a country of less than 500 residents and 110 acres, leads a church with over 1.2 billion members, and he carries the moral authority with Catholicism’s believers to influence everything from LGBT rights to immigration reform. But Xi, as the leader of a country with 1.3 billion people, wields the political, military and economic power that comes from controlling the world’s largest economy and military force.

For all the talk about Francis’s ability to deploy soft power with tactical skill, it is Xi’s hard power that is setting the agenda for climate change policy around the world, and the dual contrast on Friday revealed the limits of soft power. There’s no indication that Francis’s exhortations have made any difference on the willingness of the Chinese government to embrace transformative environmental policy.

What’s more, Xi’s increasingly progressive stand on climate change isn’t driven by the desire for international praise or even necessarily the merits of a policy that will reduce global emissions, but by hard domestic politics. In a one-party state, the Chinese Communist Party knows that it ‘owns’ every problem in China (there’s no alternative Democratic or Republican Party it can blame), so Xi knows that his government has to be seen as doing something to ameliorate his country’s crippling and health-threatening pollution. Continue reading Xi’s hard power trumps papal soft power on climate change

How Tony Abbott killed Australia’s carbon trading scheme

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In the end, Australian prime minister Tony Abbott didn’t have to call a special, massive ‘double dissolution’ election to roll back Australia’s carbon pricing scheme, the signature policy accomplishment of the six-year Labor government that preceded him.australia new

All it took was some deft maneuvering to cobble together a working majority in the 76-member Senate, where Abbott’s Liberal/National Party holds 33 seats, just short of a majority.

Nevertheless, Abbott (pictured above) won a narrow 39 to 32 victory last month in the upper house of Australia’s parliament, on the strength of six additional non-Coalition votes to repeal the carbon trading market. Having been one of the first countries to adopt a carbon trading market, Australia on July 17 became the first country to repeal a carbon trading market.

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That included the support of a mercurial former mining magnate named Clive Palmer (pictured above), whose maverick conservative Palmer United Party (PUP) became the swing vote in determining whether Abbott’s repeal push would succeed or fail.

The Labor Party’s new leader, Bill Shorten, led an unsuccessful push in alliance with the Australian Green Party, to oppose the repeal. Labor holds 25 seats in the Senate, while the Greens hold another 10. 

Abbott’s resulting victory is primarily a triumphant tactical and policy victory for the Australian right, giving Abbott an easy talking point on reducing the price of electricity for the average Australian voter (though the real long-term impact of the repeal of a carbon scheme that had reduced emissions by less than 10 percent nationally is yet to be determined).

It’s also a narrative about the fragmentation of the country’s two-party system, as far as Australian senatorial elections go, with voters placing increasingly greater power in the hands of independent third-party candidates.

On the global scale, it marks a symbolic victory for opponents of similar climate change legislation worldwide, though the battle over carbon emissions was never going to be won or lost in Australia, a country of less than 23 million. Arguably, China’s decision in June, for the first time, to limit carbon emissions at the national level, will have a much wider impact on global climate change policy.

While British prime minister David Cameron continues to promote a progressive stand on climate change as an issue to pull his Conservative Party to the middle in the United Kingdom, there’s no indication that the UK is set to introduce any major climate change legislation on the scale of Australia’s experiment with carbon pricing beyond the EU’s own carbon trading scheme. Though there was a brief window in 2008 and 2009 when a carbon-based exchange system might have been enacted in the United States with bipartisan support, those days seem long gone. Nevertheless, the administration of US president Barack Obama and the US Environmental Protection Agency, however, introduced executive actions this summer that aim to reduce US carbon emissions by 30% by the year 2030.

Australia’s carbon scheme has its origins as one of the major promises of former prime minister Kevin Rudd’s widely successful 2007 campaign that brought the Labor Party back to government after more than a decade in opposition. It was, in part, Rudd’s decision to back away from climate change legislation that caused his Labor colleagues to dump him in 2010 in favor of then-deputy prime minister Julia Gillard.

After Gillard won a narrow reelection campaign of her own later that year, she enacted a comprehensive climate change bill in 2012, as well as a broader tax on mining profits (that hasn’t raised nearly as much revenue as expected). 

The problem, both in Australia and beyond, is that the global financial crisis of 2008-09 left many national electorates wary of climate change legislation that, almost overnight, suddenly seemed much too costly to introduce at a time when so many developed countries were struggling with the highest unemployment and lowest GDP growth in decades.

That made Abbott’s pledge to repeal what’s popularly become known in Australia as the ‘carbon tax’ one of the most popular aspects of his agenda, which won wide support the parliamentary elections last September that brought Abbott’s Coalition into government. His recent victory in winning Senate support to repeal the carbon scheme will almost certainly rank among the chief legislative successes of his first year as prime minister. Continue reading How Tony Abbott killed Australia’s carbon trading scheme

Rudd’s departure from Australian politics vital to Labor’s future

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It’s hard to find anyone in Australia who lacks strong feelings about former prime minister Kevin Rudd.Australia Flag Icon

Some Australians believe that Rudd is among the most talented politicians of his era, who led Australia’s Labor Party out of the wilderness and into government in 2007, who set the stage for a landmark carbon pricing scheme (that Australia’s new center-right prime minister Tony Abbott now hopes to repeal), and who earlier this year salvaged what would have been a landslide loss of devastatingly historical proportions under Labor prime minister Julia Gillard.

Some Australians believe that Rudd, for all his political gifts, is a temperamental figure who failed to push through legislative accomplishments and  whose dysfunctional leadership inevitably led to the 2010 putsch that ousted him and installed Gillard as Labor Party leader and as prime minister.  They also believe that his constant briefing after the 2010 leadership change almost fatally wounded Gillard and Labor in the August 2010 election, and that as foreign minister between 2010 and 2012, Rudd continued to harm Gillard to the point that a desperate Labor caucus turned to Rudd at the last minute in June 2013 to save them from impending electoral doom.

That’s why there was simply no way that Labor can fully move forward from the poisonous Rudd-Gillard era while Rudd continues to sit in the Australian parliament — and that’s why Rudd stepped down on Wednesday from his Queensland seat in the House of Commons, which he had held continuously since 1998.

As Rudd himself noted in his announcement that it was ‘time to zip,’ it’s become a precedent that former prime ministers on both the left and the right leave parliament shortly after losing elections:

“It was right and proper that I report my decision to the Parliament at the earliest opportunity. “That day is today. I have chosen to do so now to create minimal disruptions to the normal proceedings of the house.

“My predecessors as prime minister, Whitlam, Fraser, Hawke and Keating, reached similar decisions to leave the Parliament before the subsequent election.  As did would-be prime ministers, Costello and Downer, perhaps prime minister Howard would have done the same had he retained the seat of Bennelong, although we will never know.”

The sharp ding at Howard was classic Rudd — Howard famously lost his seat in the 2007 landslide that ushered Rudd and Labor to power.  Rudd himself faced a difficult fight in the September 2013 election, though he ultimately survived a strong Liberal challenge (moreover, it’s not certain that Labor will retain the seat now that Rudd is resigning).
Continue reading Rudd’s departure from Australian politics vital to Labor’s future

What should Australia expect from prime minister Tony Abbott?

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Before the Kevin and Julia show, there was the Tony and Malcolm show.Australia Flag Icon

The rivalry between the dueling camps of Labor prime minister Kevin Rudd and former Labor prime minister Julia Gillard is now legendary — Rudd came to power in November 2007 after waging a near-perfect campaign (‘Kevin 07’) that brought the Australian Labor Party back to power after over a decade in opposition.  But his deputy prime minister Julia Gillard became prime minister in June 2010 after Rudd’s parliamentary colleagues wearied of his leadership style.  Gillard led Labor to the narrowest of reelections in August 2010 in what remains a hung parliament.  Rudd, who returned to government as Gillard’s foreign minister shortly after the election, challenged Gillard for the Labor leadership in February 2012 — and lost.  But as Gillard’s poll standing deteriorated throughout 2013, Rudd’s supporters engineered another vote in June 2013, and so Rudd (not Gillard) is leading Labor into Australia’s election on Saturday.

What’s less well-known is that opposition leader Tony Abbott (pictured above) emerged as the leader of the Liberal Party (and the center-right Liberal/National Coalition) after engineering a leadership spill of his own in December 2009.  After former prime minister John Howard lost his seat in the 2007 election, the Liberals turned initially to Brendan Nelson, but finally to Malcolm Turnbull as its leader in 2008.  But when Turnbull pushed his party to support the Labor government’s carbon reduction scheme, Abbott challenged Turnbull and improbably won a 42-41 victory on the second ballot, giving the Liberals their fourth leader in three years.

It’s an understatement to say that Abbott has proven a hard sell to the Australian public — in some ways, Abbott is akin to the Barry Goldwater or even the Ronald Reagan of Australian governance, a conviction politician and a conservative’s conservative who will undoubtedly pull Australia to the right.

A staunch Catholic who once studied in seminary for a career in the church (nicknamed early in his career by the press as the ‘Mad Monk’), a boxer with plenty of appetite for aggression in Australia’s House of Representatives, and a conservative who once studied at Oxford on a Rhodes scholarship, Abbott is multifaceted and talented.  But there’s no doubt that he’s socially and economically more conservative than Turnbull, Howard or Malcolm Fraser (prime minister from 1975 to 1983).  Abbott also had more ties to the recently rejected Howard government than Turnbull, having served as employment minister from 1998 to 2003 and health minister from 2003 to 2007.  Australian voters remained too hesitant about Abbott to hand the government back to the Coalition in 2010, but just barely.  Today, the Coalition holds one more (72 to 71) seat than Labor in the  House of Representatives, but independents and the Australian Greens have provided the Gillard/Rudd government a 76-74 majority since 2010.  It’s a similar story in the Senate, where the Coalition already holds a 74 to 71 advantage over Labor, which governs with the support of nine Green senators.

Just as Rudd routinely garnered higher approval ratings than Gillard between 2010 and 2013, Turnbull posted higher ratings as well.  Commentators in early 2013 daydreamed over the possibility that both of Australia’s major parties would dump their unpopular leaders in favor of their more charismatic alternatives.

But while Rudd and Gillard plotted and schemed over leadership, dragging Labor’s government and Australia into what amounted to a personality contest, Turnbull refrained from challenging Abbott for the Liberal leadership.  The difference between the Labor approach and the Liberal approach is one reason why Abbott is a certain favorite to become Australia’s next prime minister.

Since returning as prime minister in June, Rudd has spent most of his time flailing — although a Newspoll survey showed Rudd’s Labor tied with Abbott’s Coalition as recently as July 8, Labor now trails the Coalition in the two-party preferred vote (i.e., after all third-party voter preferences have been distributed to Labor and the Coalition) by a 54% to 46% margin, according to the latest September 1 Newspoll survey.

But Rudd’s campaign has managed to do what even Gillard’s government could not — turn Abbott into a plausible prime minister.  For the first time in the campaign, more voters prefer Abbott as prime minister (43%) than prefer Rudd as prime minister (41%) — that’s an astounding turnaround, given that an early August poll showed that voters widely preferred Rudd to Abbott by a 47% to 33% margin.  Ironically, though Rudd was supposed to be Labor’s secret weapon in winning a third term in power, Abbott has so completely transformed his image through the course of the campaign that Rudd may now be saddled with the kind of landslide defeat that terrorized his Labor colleagues into sacking Gillard just three months ago.

If Abbott delivers the kind of victory that polls predict on Saturday, it will be in large part due to the self-destructive factional battles within Labor, but it will also have much to do with Abbott’s steady happy-warrior approach over the past four years.

So what will Abbott’s likely win mean for Australia as a matter of policy, beyond the presumable end to the instability of the Rudd-Gillard era?

Here’s a look at seven issues to keep an eye on in what’s become an increasingly likely Abbott government. Continue reading What should Australia expect from prime minister Tony Abbott?

Feisty debate leads Abbott to ask Rudd, ‘Does this guy ever shut up?’

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The consensus is that prime minister Kevin Rudd, behind narrowly in the polls, had a better performance in the second leaders’ debate earlier in Brisbane, turning his underdog status as a way to poke holes in the platform of his rival, opposition leader Tony Abbott.Australia Flag Icon

At one point, Rudd harped so much about the cuts that Abbott might make as prime minister that Abbott snapped, ‘Does this guy ever shut up?’

It’s a sentiment many of Rudd’s rivals — from former Liberal/National Coalition prime minister John Howard to Labor prime minister Julia Gillard, who Rudd deposed as Labor leader only in June.

But Rudd’s tenacity resulted in at least one major concession from Abbott — that Abbott’s plan to cover the costs of a $5.5 billion paid parental leave scheme are insufficient.

Rudd parried with Abbott on the carbon tax that Rudd initially championed, Gillard ultimately enacted and Abbott hopes to repeal.  Rudd warned Abbott that the rest of the world, including the People’s Republic of China, is moving toward Australia’s carbon scheme — China launched its first experimental carbon scheme earlier this year in Shenzhen.

Rudd returned to his pledge from the first debate to introduce a bill legalizing same-sex marriage if Labor wins a third consecutive term, and Abbott reiterated his opposition to marriage equality, however gingerly — Abbott’s sister is gay:

All I can do is candidly and honestly tell people what my view is. I support the traditional definition of marriage as between a man and a woman. I know that others dispute this, because I have lots of arguments inside my own family on this subject now.

The two also bickered over asylum policy, an issue upon which Rudd and Gillard have now both made such a 180-degree turn that Labor’s policy on granting asylum to migrants who attempt to arrive in Australia by boat is now much tougher than the Howard government’s policy in the mid-2000s.

Rudd also repeatedly singled out Abbott’s record as health minister and he cheerfully alleged that Abbott cut $1 billion from public hospital budgets while in government.  Abbott denied the charges, arguing that the Howard government cut the rate of growth in spending, and he asked Rudd to stop telling fibs.

Commentators did not necessarily believe it was the kind of debate that marked a massive turning point in the campaign, though most agreed Rudd performed better than in his first debate:

In an early sign that the Labor leader needed a punchier performance than he had put in at the first debate nearly a fortnight ago, Mr Rudd capitalised first on the more flexible format of the people’s forum in Brisbane’s Broncos Leagues Club to accuse Mr Abbott of having ”ripped” $1 billion from hospital budgets and of planning further cuts. It was a charge Mr Abbott flatly denied after using his opening remarks to remind voters of Labor’s record in office.

Michael Gordon, political editor for The Age, argues that Rudd won narrowlyContinue reading Feisty debate leads Abbott to ask Rudd, ‘Does this guy ever shut up?’