| Share facebook twitter | RSS

4
Comments

ambassador Report View

[Thematic Report] Carbon Tax & Carbon Credits (the basics)

by Katie Lau | 31-07-2021 05:43 recommendations 0

In order to reach Carbon Neutrality by 2050, we as a planet will need to make changes to reduce/eliminate carbon emissions. Although we as individuals can help by planting trees, taking our bikes or walking instead of cars, or even buying green vehicles (reference to last month’s theme :)); industries (high carbon emitters) will need to take action as well!


In order to make this happen, governments have implemented an economic incentive for industries to make changes to reduce emissions- carbon taxes. Carbon taxes set a direct price on carbon, by taxing the amount of emissions that consumers, businesses, and governments produce. In response, businesses and consumers make green changes - like switching fuels or adopting new technology - to avoid paying the carbon tax.

Carbon taxes (or something similar) have been effective in a number of countries in the world. Specifically in the US, carbon tax proposals have had more of a struggle taking hold country-wide, but US cities (like Boulder, Colorado in 2006) have approved carbon taxes.


Where does the carbon tax money go? Globally, more than $28.3 billion is collected from carbon taxes. Part of the revenue is invested in “go green” efforts (energy efficiency, renewable energy) (27%), 26% towards state general funds, and 36% is returned to taxpayers.


Carbon credits have also affected emissions from businesses. They are permits granted for the holder to emit one ton of carbon dioxide or another equal greenhouse gas, in reward of keeping emissions below a limit. Carbon credits can be exchanged in the carbon market, by being sold between businesses.


Although I’ve newly learned about this topic and these efforts, I can see that carbon taxes and credits are major tools in helping regulate emissions from industries & businesses. Together with larger businesses, we as individuals can work more strongly towards a Carbon Neutral 2050. 


References used:

https://www.c2es.org/content/carbon-tax-basics/

https://youmatter.world/en/definition/definitions-carbon-price-carbon-credit/

https://www.sciencedirect.com/science/article/pii/S0301421516302531

 
carbon taxes

KatieLau

  • United States Of America E-gen Ambassador Katie Lau
 
 

4 Comments

Katie Lau

  • Katie Lau says :
    Thanks for commenting Bindu, and wanted to say thanks for always commenting Debbie and Yuseon :)
    I appreciate your comments and feedback!

    - Katie
    Posted 15-08-2021 04:38

Yuseon Mentor

  • Yuseon Mentor says :
    Hi Katie,

    This is your mentor Yuseon:)

    I strongly agree with your idea that to reach carbon neautrality, we need more than
    the efforts of individuals. High institutes could make ways for policies such as carbon tax,
    and use the money to study carbon absorbtion or usage for other purposes.

    Also, giving out carbon credits would be effective in regulating corporate??s emission. However, this
    might have its pros and cons since it might backfire, thinking that the companies getting the ‘right?? to emit carbon.

    Thanks for sharing!
    Posted 12-08-2021 09:45

Debbie Mentor

  • Debbie Mentor says :
    Dear Katie,

    This is your mentor Debbie. :)
    I agree that we need both industries and us individuals working for the common goal of reaching carbon neutrality. I hope that putting carbon tax and addressing carbon credit, which is a relatively new method introduced recently, may help us reach the goal faster than expected.

    Best,
    Debbie
    Posted 02-08-2021 01:12

Bindu Dhakal

  • Bindu Dhakal says :
    Hello Katie,
    Hope you are doing great,
    Thank you so much for your informative report,
    Keep writing, keep shining,
    Green Cheers,
    Bindu

    Posted 31-07-2021 20:54

Post a comment

Please sign in

Opportunities

Call for applications
Date: TBD to TBD
Type: Online

slogan writing competition
Date: TBD to september 28
Type: Online

  • attendance banner

Resources