Carbon Tax: How it can help to achieve climate goals?

Limiting global carbon emissions is at the top of the global climate change agenda. To sustainably achieve the climate goals the world is engaged in various climate talks but still struggling to limit their harmful emission for the sake of development. Worldwide diverse strategies are being evaluated to minimize the emission of GHG gases, and among others, the carbon tax is attracting significant attention from leading economies.

Source: https://pixabay.com/illustrations/co2-exhaust-climate-change-4767440/

Here, for every ton of GHG gases emitted into the atmosphere, a carbon tax is placed over it to keep control of unregulated emissions by concerned authorities. The carbon tax provision was recently approved by the Denmark government to target livestock emissions at the farm level for the first time across the globe. This move will encourage businesses and individuals to observe low carbon footprints in their daily farm practices.

In this taxation, carbon content is evaluated in fossil fuels or other emission sources for tax evaluation. With the increase in carbon taxes, individuals will be encouraged to look for alternative sustainable and environment-friendly options. Such a taxation regime will bring revolution among the governments, businesses, and individuals to broadly adapt to the clean energy sources aligning to the set goals of climate change.

The heavy carbon taxes will challenge the legacy of fossil fuels as well as minimize the high carbon emission practices across sectors such as agriculture, livestock, etc. Initiatives to restore environmental degradation, plantation, and developing wetland areas can be some of the sustainable solutions to save themselves from carbon tax. Investments in green technology and innovation can help industries to maintain their cost-effectiveness in global competitive markets. The income generated can be utilized for the upliftment of the communities that are experiencing the severe heat of climate change.

The revenue can be directed toward the ongoing research for the development of sustainable energy solutions and innovative methods by governments worldwide. The fund can also be used to facilitate cutting-edge innovation and viable ways to get rid of paying higher taxes due to high GHG emissions. It will encourage the global society to make a shift towards a cleaner economy for a sustainable future for mankind.