Carbon Tax: case of Denmark

One way, are carbon credits, voluntary or not. And another way are carbon taxes. Here the transcription of a quick video by the World Economic Forum.

• 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 ?

Click below for the quick video (in English). By the way, Brazil has already something similar (repeat, similar): have you heard about CBIOS. See this recent post.