For Tuesday 7 July 2020 provided by Ecoprofit.com.au (#letsfindsolutions)
News for green investors and organisations, stock watch & grant opportunities
Affluence is Killing the Planet
The IPAT formula above summarizes the impact of humans on the environment. It is a function of population increase, rising affluence and the impact of technological improvements. Technology adds to impact by promoting higher consumption, but it also reduces impact by facilitating low-carbon systems and products. It is perhaps the most significant ingredient needed to reduce global carbon emissions. However, while technological improvements have helped to reduce emissions and other environmental impacts, the worldwide growth in population and affluence has consistently outpaced these gains, driving all the impacts back up.
The graph below shows per capita carbon emissions for different countries. The most significant rise is in China, caused by out-sourcing of manufacturing by other countries(aka globalisation), population growth and in particular, the rising number of affluent middle-class citizens.
The graph tends to indicate western countries are the good guys with per capita emissions dropping over time, thanks mainly to technology. But, we are the bad guys, because we are China?s demand-thirsty customers. We are also China?s main suppliers of energy such as coal, gas and oil. For instance, all the coal sold by Australia to China (helping to keep us an affluent country) is ultimately posted to China?s carbon ledger, not ours.
The world?s population is closing in on 7.8 billion. Just as significant is the impact of rising affluence which is trashing the planetary life support systems. What?s more, it also obstructs the necessary transformation towards sustainability by driving power relations and consumption norms. To put it bluntly: the rich do more harm than good.
Clearly, in societies where money can buy almost everything, being rich is generally perceived as something good. It implies more freedom, fewer worries, more happiness, higher social status. However, the facts are clear: the wealthiest 0.54%, about 40 million people, are responsible for?14% of lifestyle-related greenhouse gas emissions, while the bottom 50% of income earners, almost 4 billion people, only emit around 10%.
The world?s top 10% income earners are responsible for?at least 25% and maybe up to 43% of our environmental impact. Most people living in developed countries would fit into this category, meaning you don?t have to consider yourself rich in order to be globally affluent. Even many poorer people in wealthy countries have a disproportionately large and unsustainable resource footprint compared to the global average.
It is less clear, however, how to address the problems that come with affluence. Progressive mainstream policymakers talk about??greening consumption? or ?sustainable growth??to ?decouple? affluence from climate breakdown, biodiversity loss and other planetary-scale destruction.
It may be the answer lies in fear. The more understanding the affluent have of the calamity that awaits us if we don?t strive now to get carbon emissions under 25GT per annum, the more the affluent will be persuaded to redirect investment to clean alternatives.
Grants/Subsidies/Funding ? 2020 property claims and the taxman ? Part 2
The ATO keeps a close eye on claims for repairs to newly bought rental properties. The costs to repair damage and defects existing at the time of purchase, such as leaky roofs or rotten window frames, or the costs of renovation cannot be claimed immediately.
These costs are deductible instead over a number of years or are added to the cost base of the property for CGT purposes. Expect to see the ATO checking such claims and pushing back against claims which don?t stack up. And ignorance is no defence; just because you didn?t know the property had defects when you bought it doesn?t change the ATO?s attitude to so-called ?initial repairs?.
If the property is rented out to friends or family at a discounted rate, this will be regarded as a non-commercial rental. The income will still be taxable, but you will only be able to claim deductions up to the amount of rent you have received. You won?t be able to make a loss; if you were relying on negative gearing, that isn?t a desirable outcome.
Don?t forget, the ATO has access to many sources of third-party data, including access to popular property rental listing sites, so it is relatively easy for them to establish whether a claim that a property was ?available for rent? is correct.
The key tip is to ensure that you keep good records. The golden rule is ? if you can?t substantiate it, you can?t claim it, so it?s essential to keep invoices, receipts and bank statements for all property expenditure, as well as proof that your property was available for rent, such as rental listings.
WHAT YOU CAN CLAIM
You can claim a deduction for your related expenses for the period your property is rented or is available for rent:
- Management and maintenance costs, including interest on loans, can generally be claimed immediately (that is, deducted against your current year’s income).
- Borrowing expenses, depreciation and capital works spending can be deducted over a number of years.
WHAT YOU CAN?T CLAIM
- Expenses not actually paid by you, such as water or electricity charges paid by your tenants
- Acquisition and disposal costs, including the purchase cost, conveyancing and advertising costs and stamp duty on the title transfer ? instead, these are usually included in the property’s cost base, which would reduce any capital gains tax when you sell the property
GST credits for anything you purchase to lease the premises ? GST doesn’t apply to residential rental properties. However, when claiming the expense as a deduction, you claim the total amount you’ve paid (inclusive of GST, if applicable).
Eco-tip for the day ? Avoid using the clothes dryer wherever you can
Running a clothes dryer for 2 hours uses over 4kWhs of electricity and if using grid-supplied electricity, results in 4kgs of carbon emissions. By simply line-drying your clothes over a year you will save between 200kgs and 600kgs of carbon emissions. Tumble dryers are not only top energy-consuming appliances, they are also the leading cause of appliance-related house fires.
Share watch ? GTI Resources Ltd (GTR:ASX)
GTI Resources Ltd (?GTI?) is an Australian minerals exploration company focused on uranium and vanadium. The company?s flagship assets are located in the prolific Henry Mountains region in Utah, USA with an initial focus on the Jeffrey Project.
The Henry Mountains region contains high grade uranium & vanadium deposits having produced 17.5 Mt of ore averaging 2,400ppm U3O8 and 1.25% V2O5 (92 mlbs U3O8 and 482 mlbs V2O5) dating back from the early 1900?s. GTI acquired the projects in 2019 and is currently preparing for its maiden drill program, after sampling established its potential high-grade nature.
Having recently completed down hole logging of 26 historical drill holes, GTI is now preparing for its maiden drilling program at the past producing Jeffrey Project in Utah. Located in close proximity to the only fully licenced and operational uranium mill in the US ? the White Mesa Mill operated by Energy Fuels Inc (TSE: EFR) ? the project has potential to deliver uranium ore to fill existing mill processing capacity.
In addition, further sampling and mapping work has been conducted at the nearby highly prospective Rats Nest Project which has also produced uranium and vanadium ore in the past. Upcoming drilling activity scheduled for July offers a potential high impact value driver. Also, it is expected the recently announced support from the US government for domestic uranium producers and uranium market developments will drive interest in the company.
GTI also owns the Niagara gold project, located in WA, which comprises a granted exploration licence and four prospecting licence applications.
GTI offers speculative exposure to a recovery in uranium markets through a portfolio of exploration assets. The company is well positioned to leverage its assets to capitalise on opportunities as it advances its projects. While volatility in uranium prices and funding beyond the current programs are principal risks, the company?s Jeffrey Project represents a strategic exploration asset in a government backed sector. Amid a limited universe of investible securities on the ASX and with uranium spot prices trading near four-year highs, it seems a good buy.
The graph shows the ten-year share price history.
The VIX fear gauge up by 0.26 of a point since last Friday EST to 27.94.
The Dow Jones Industrial Average up since last Friday EST by 459.67 points or 1.74% to 26,287.03, the STOXX 600 up 2.50 points or 0.69% to 371.21 and the Shanghai Composite index up 192.53 points or 6.11% to 3,345.34.
Gold up to 1,794.40. US 10-year Treasury Bonds down to 0.674 and oil up to 40.48. Cryptos Bitcoin up 211.50 points since last Friday or 2.32% to 9,322.05.
ASX 200 up 166.00 points or 2.82% since last Friday to 6,059.90. The Aussie dollar on 69.72US cents.
Eco Market Spot Prices
Sources:?RenewEconomy, demandmanager,? Reuters, SMH, Market Watch, Forbes