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