Carbon Tax: case of Denmark

Denmark just introduced the world’s strictest carbon tax

It could slash the country’s CO2 emissions by million tonnes a year

Companies will have to pay $159 for every tonne of CO2 they emit

That’s an extra $53 per tonne

On top of the $106 levied by the EU’s emissions-trading scheme

But how the carbon tax work?

The aim is to make companies pay for the climate damage they directly cause …

By their use of fossil-fuel energy

This incentivizes companies to clean up their act

A global carbon tax could reduce overall emissions by as much as 12,3%

Experts say carbon taxes pay for themselves, too

A levy of $49/tonne would generate $2.2 trillion for the US by 2028 …

According to a report by the US Treasury

And by reducing emissions today …

The tax can soften the impacts of climate change tomorrow

Saving money that would otherwise be spent on response and adaptation

28 countries have so far implemented a carbon tax

But this approach has its challenges

Experts say these taxes can disproportionately hurt poorer people

They can be politically difficult to implement

And they only target one source of emissions: Fossil fuels

What do you think about carbon taxes ?