College of Engg, Guindy
What is carbon tax?
CO2, a global warming contributor
Need for carbon tax
No increase of tax for govt.
An environmental tax on the carbon- di-oxide
emissions from burning fossil fuels.
A fee attached to sources of GHG emissions in order
to discourage their release.
Carbon tax is also known as CO2 tax or carbon-di-
The purpose of carbon tax is to protect the
environment by penalizing the carbon-di-oxide
Scientific sensus holds that greenhouse gas
emissions are the primary cause of global warming.
Carbon dioxide is the major greenhouse gas and as
such it is considered as an air pollutant. Worldwide, 27
billion tonnes of carbon dioxide are produced by
human activity annually.
The implementation of carbon tax is very essential.
Because, the high levels of CO2 already in the Earth’s
atmosphere and being added daily are destabilizing
established climate patterns and threatening the
ecosystems on which we and other living beings
A carbon tax should be revenue-neutral. Revenue-
neutral means that little if any of the tax revenues
raised by taxing carbon emissions would be retained
Two primary return approaches are being
1.The first method would refund the revenues directly
through regular (e.g., monthly) equal dividends to all
residents. In effect, every resident would receive equal,
identical share of the total revenue amount.
2. In the other method, each dollar of carbon tax revenue
would activate a dollar’s worth of reduction in existing
taxes such as the income tax or sales tax.
Emission of carbon-di-oxide can be reduced in a
It increases the economic growth of a country.
A small additional income for poor people during
the initial stage of implementation.
A worldwide method for reducing carbon emission.
Fossil fuels can be saved up to a greater extent for
Usage of non-combustible energy sources such as
wind or solar energy can be promoted.
This is just a tax and not a penalty. Hence by
implementing it, each and every citizen in the country
can be made responsible for reducing CO2 emissions.
Companies can emit as much as they want, as long as
they're willing to pay for it.
The poor spend a relatively larger portion of their
income on carbon, and so they would be hit
harder by a carbon tax.
This will be beneficial only for developed countries,
but will affect developing countries.
Sweden enacted a carbon tax, placing a tax of $100 per ton
on the use of oil, coal, natural gas, liquefied petroleum gas,
petrol, and aviation fuel.
Denmark initiated a carbon tax in 1990, about $50 per
ton of carbon. After 15 years, Denmark managed to cut
their carbon emissions by 15 percent.
In 2009 France initiated 17 Euros per ton of CO2 as a
In 1990s, it was proposed that it would have taxed
for all fuel sources based on their heat content. But it
was not accepted.
In 2000, Carbon tax proposal was considered as a
central planning solution for global warming.
Finally in 2007, Carbon Tax was initiated in U.S
after lot of oppositions.
“Carbon tax is not yet implemented in india”.
Indians mostly concentrate on economical point of
view rather than environmental point of view.
Adding an additional tax will severely affect the low
income energy users.
So, Implementing carbon tax will be a great task
Carbon tax is very important to limit all environmental
related issues such as climate change and global warming.
Only very few countries have implemented carbon tax
which has led to a greater environmental sustainability and
But, it should be enforced in each and every country and
more importantly, those activities which emit carbon without
paying proper carbon tax should be considered as a criminal