Nourishing the Planet
In October, Denmark implemented the world’s first tax that directly targets saturated fat in foods. Saturated fat, according to the World Health Organization, raises low-density lipoprotein (LDL) cholesterol levels which can increase the risk of cardio vascular disease. Saturated fat is found in foods from animal sources, such as butter and bacon. Any products which contain more than 2.3 percent saturated fat are subject to the tax. The consumer must pay an additional 16 Danish kroner (US$2.85) per kilogram (or 2.2 pounds) of any food product which has more than 2.3 percent saturated fat. For example, consumers now have to pay 37 Danish kroner (US$6.50) instead of 34 Danish kroner (US$6) for a pound of cheese.
This tax was passed overwhelmingly by the Danish Parliament this past March. But there are serious concerns by the food industry, particularly organic dairy farmers, who worry about the potential loss in revenue from the tax and believe that the government is unfairly deeming their products unhealthy. According to an article in The Washington Post, the tax could prove to be regressive, putting a heavier burden on lower-income consumers.
Furthermore, the likelihood of the tax to change dietary behavior is debatable. A study conducted by Lisa Powell and Frank Chaloupka of the University of Illinois at Chicago determined that, “Small taxes or subsidies [of unhealthy, energy-dense foods] are not likely to produce significant changes in BMI or obesity prevalence but that nontrivial pricing interventions may have some measurable effects.” Based on these findings, the tax could have little or no effect on food consumption habits in Denmark if it remains at the current rate. An alternative of directly taxing the producers of these food products would not likely lead to a different outcome, since the cost would be passed on to consumers anyway via price increases.
Despite these concerns, this tax has the potential to increase awareness about personal health and ways to improve nutrition. As a recent study by Jason M. Fletcher, David E. Frisvold, and Nathan Tefft in the Journal of Policy Analysis and Management shows, taxes which aim to influence consumers’ behaviors regarding what they consume will be more effective when coupled with steps taken to “inform the public about potentially negative health consequences.” By coupling the tax with educational initiatives and methods, it is more likely to generate positive results.
Fletcher, Frisvold, and Tefft also explain that taxes on specific products, like soda, can have little results if the product can be easily substituted, such as with another type of sugary beverage. Therefore, this tax has the potential to improve health in Denmark because it targets an aspect of unhealthy products—levels of saturated fat—as opposed to focusing on one specific product, such as soda.
Other countries in the European Union have recently passed or are considering similar taxes on food in attempts to improve public health. Hungary also recently passed a comprehensive tax aimed at products with high sugar, fat, and salt contents, in addition to soda and alcohol. Revenue from this tax goes directly toward health care costs. France, Britain, and Sweden are also discussing the possibility of implementing similar taxes in the future.
Jesús Serafín Pérez, president of the Brussels-based industry lobby group FoodDrinkEurope, is strongly against these initiatives. Pérez argues that such taxes “only serve to dissuade investment and stifle innovation.” Despite the group’s disdain for these taxes, its director of communications, Lisa McCooey, makes an important point in stating that, “Consumer information and education, not tax, is the way to advance consumer understanding of healthy eating.” Regardless of the efficacy of the taxes, increased understanding and education are integral steps to improving public health.
While it is still too early to tell whether or not such taxes will generate positive results, they are significant because they are generating discussion on ways to curb obesity and improve health in various countries. If this tax is complemented with educational initiatives, Denmark has the potential to influence personal decisions on consumption and the overall health of its population. Its success could influence the current debates in other countries, including the U.S., Australia and Britain.
What do you think the outcomes of this tax will be? Should it be adopted by other countries?
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Though made in large part of plastic, glass, ceramics, gold and copper, they also contain critical resources. The gallium used for LEDs and the camera flash, the tantalum in capacitors and indium that powers the display were all pulled from the ground — at a price for nature and people.
"Mining raw materials is always problematic, both with regard to human rights and ecology," said Melanie Müller, raw materials expert of the German think tank SWP. "Their production process is pretty toxic."
The gallium and indium in many phones comes from China or South Korea, the tantalum from the Democratic Republic of Congo or Rwanda. All in, such materials comprise less than ten grams of a phone's weight. But these grams finance an international mining industry that causes radioactive earth dumps, poisoned groundwater and Indigenous population displacement.
Environmental Damage: 'Nature Has Been Overexploited'
The problem is that modern technologies don't work without what are known as critical raw materials. Collectively, solar panels, drones, 3D printers and smartphone contain as many as 30 of these different elements sourced from around the globe. A prime example is lithium from Chile, which is essential in the manufacture of batteries for electric vehicles.
"No one, not even within the industry, would deny that mining lithium causes enormous environmental damage," Müller explained, in reference to the artificial lakes companies create when flushing the metal out of underground brine reservoirs. "The process uses vast amounts of water, so you end up with these huge flooded areas where the lithium settles."
This means of extraction results in the destruction and contamination of the natural water system. Unique plants and animals lose access to groundwater and watering holes. There have also been reports of freshwater becoming salinated due to extensive acidic waste water during lithium mining.
But lithium is not the only raw material that causes damage. Securing just one ton of rare earth elements produces 2,000 tons of toxic waste, and has devastated large regions of China, said Günther Hilpert, head of the Asia Research Division of the German think tank SWP.
He says companies there have adopted a process of spraying acid over the mining areas in order to separate the rare earths from other ores, and that mined areas are often abandoned after excavation.
"They are no longer viable for agricultural use," Hilpert said. "Nature has been overexploited."
China is not the only country with low environmental mining standards and poor resource governance. In Madagascar, for example, a thriving illegal gem and metal mining sector has been linked to rainforest depletion and destruction of natural lemur habitats.
States like Madagascar, Rwanda and the DRC score poorly on the Environmental Performance Index that ranks 180 countries for their effort on factors including conservation, air quality, waste management and emissions. Environmentalists are therefore particularly concerned that these countries are mining highly toxic materials like beryllium, tantalum and cobalt.
But it is not only nature that suffers from the extraction of high-demand critical raw materials.
"It is a dirty, toxic, partly radioactive industry," Hilpert said. "China, for example, has never really cared about human rights when it comes to achieving production targets."
Dirty, Toxic, Radioactive: Working in the Mining Sector
One of the most extreme examples is Baotou, a Chinese city in Inner Mongolia, where rare earth mining poisoned surrounding farms and nearby villages, causing thousands of people to leave the area.
In 2012, The Guardian described a toxic lake created in conjunction with rare earth mining as "a murky expanse of water, in which no fish or algae can survive. The shore is coated with a black crust, so thick you can walk on it. Into this huge, 10 sq km tailings pond nearby factories discharge water loaded with chemicals used to process the 17 most sought after minerals in the world."
Local residents reported health issues including aching legs, diabetes, osteoporosis and chest problems, The Guardian wrote.
South Africa has also been held up for turning a blind eye to the health impacts of mining.
"The platinum sector in South Africa has been criticized for performing very poorly on human rights — even within the raw materials sector," Müller said.
In 2012, security forces killed 34 miners who had been protesting poor working conditions and low wages at a mine owned by the British company Lonmin. What became known as the "Marikana massacre" triggered several spontaneous strikes across the country's mining sector.
Müller says miners can still face exposure to acid drainage — a frequent byproduct of platinum mining — that can cause chemical burns and severe lung damage. Though this can be prevented by a careful waste system.
Some progress was made in 2016 when the South African government announced plans to make mining companies pay $800 million (€679 million) for recycling acid mine water. But they didn't all comply. In 2020, activists sued Australian-owned mining company Mintails and the government to cover the cost of environmental cleanup.
Another massive issue around mining is water consumption. Since the extraction of critical raw materials is very water intensive, drought prone countries such as South Africa, have witnessed an increase in conflicts over supply.
For years, industry, government and the South African public debated – without a clear agreement – whether companies should get privileged access to water and how much the population may suffer from shortages.
Mining in Brazil: Replacing Nature, People, Land Rights
Beyond the direct health and environmental impact of mining toxic substances, quarrying critical raw materials destroys livelihoods, as developments in Brazil demonstrate.
"Brazil is the major worldwide niobium producer and reserves in [the state of] Minas Gerais would last more than 200 years [at the current rate of demand]," said Juliana Siqueira-Gay, environmental engineer and Ph.D. student at the University of São Paulo.
While the overall number of niobium mining requests is stagnating, the share of claims for Indigenous land has skyrocketed from 3 to 36 percent within one year. If granted, 23 percent of the Amazon forest and the homeland of 222 Indigenous groups could fall victim to deforestation in the name of mining, a study by Siqueira-Gay finds.
In early 2020, Brazilian President Jair Bolsonaro signed a bill which would allow corporations to develop areas populated by Indigenous communities in the future. The law has not yet entered into force, but "this policy could have long-lasting negative effects on Brazil's socio-biodiversity," said Siqueira-Gay.
One example are the niobium reserves in Seis Lagos, in Brazil's northeast, which could be quarried to build electrolytic capacitors for smartphones.
"They overlap the Balaio Indigenous land and it would cause major impacts in Indigenous communities by clearing forests responsible for providing food, raw materials and regulating the local climate," Siqueira-Gay explained.
She says scientific good practice guidelines offer a blueprint for sustainable mining that adheres to human rights and protects forests. Quarries in South America — and especially Brazil — funded by multilaterial banks like the International Finance Corporation of the World Bank Group have to follow these guidelines, Siqueira-Gay said.
They force companies to develop sustainable water supply, minimize acid exposure and re-vegetate mined surfaces. "First, negative impacts must be avoided, then minimized and at last compensated — not the other way around."
Reposted with permission from DW.