A case for differential global carbon tax.

GS-III: A case for a differential global carbon tax.

News

Climate change is a global problem and a global problem needs a global solution. The most recent IPCC report suggests that we as humankind might have just over a decade left o limit global warming.

What is a carbon tax?

A carbon tax is a fee for making users of fossil fuels pay for climate damage their fuel use imposes by releasing carbon dioxide into the atmosphere, and for motivating switches to clean energy

India introduced a nationwide carbon tax in 2010, which is currently Rs.400/tonne.

Carbon as non-regressive:

Skewed consumption pattern: India's carbon emissions in 2014 were more than three times its level in 1990. While the emissions have increased sharply, their distribution across income groups is extremely skewed. The poor in India who contribute the least to climate change face the maximum brunt. Thus implementation of the carbon tax and utilizing the proceeds for pollution control and augmenting the health budget is a rational way forward.

Reducing demand: By taxing carbon revenue thus generated can be used for a systematic overhaul of the energy mix in the economy, carbon taxes address the demand side of carbon-based energy resources i.e. reducing it ( by increasing prices of carbon-intensive products).

Health cost of pollution: By reducing carbon emissions through taxing there are immense health benefits. A significant part of more than 3 % cent of India’s GDP currently spent on pollution-induced diseases will inevitably come down and this cost is heavily borne by the poor.

Climate finance: When it comes to mitigation of climate change the global North has to shoulder a higher burden of adjustment both because of their past and current contributions as well as their greater access to funds. Carbon tax in these nations can help to fund climate financing thus ensuring climate justice and equity.

Subsidizing renewable energy sources through cross-subsidization from a carbon tax can help in dealing with climate change by promoting solar energy, wind energy, cleaner biofuels etc.

Conclusion

Thus, the Carbon tax apparently gives the impression of being a regressive tax; however, by implementing it in conjunction with broader health and energy policy, it can help in redistribution and help the poor to ward off the negative impact of climate change.

At the same time, the Carbon tax will help in the achievement of goals under the Paris Agreement to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels.

Source: The Hindu

Join Our Telegram

How world is losing fertile land

Striking a blow for investigative credibility

Oceanic Anoxic Event 1a and MASS EXTINCTION

25 Dec, 24
SHARE

Oceanic Anoxic Event 1a from the Paris Basin (Environment) Paper-3 PMP OAE 1a refers to a period during the Cretaceous Period (145 million years ago and ended 66 million years ago) when Earth's oceans became depleted of oxygen, causing a significant disruption in marine life. Cause: The event is believed to have been

Viksit Panchayat Karmayogi (Good governance)

26 Dec, 24
SHARE

Viksit Panchayat Karmayogi (Good governance) Governance GS PAPER-2 PMP Dr. Jitendra Singh launched the ‘Viksit Panchayat Karmayogi’ initiative on Good Governance Day, celebrated to mark the 100th birth anniversary of former Prime Minister Atal Bihari Vajpayee. The initiative, which is part of the broader ‘Prashasan Gaon

Major programmes to control Air Pollution

23 Dec, 24
SHARE

Major programmes to control Air Pollution National Clean Air Programme? It was launched by the Ministry of Environment, Forests and Climate Change (MoEFCC) in January 2019. It is the first-ever effort in the country to frame a national framework for air quality management with a time-bound reduction target. The

Air pollution and Air quality Measures in India

21 Dec, 24
SHARE

Air pollution and Air quality Measures in India (Environment) GS Paper-3 P-M-P Air pollution may be defined as the presence of any solid, liquid or gaseous substance including noise and radioactive radiation in the atmosphere in such concentration that may be directly and/or indirectly injurious to humans or other l

Geopolitical Significance of Ports

20 Dec, 24
SHARE

Geopolitical Significance of Ports (IR) Act as Geopolitical Assets: Ports enhance the projection of strategic reach, which helps strengthen the country’s control over important sea and energy supply routes. E.g. Indian Navy’s staging base at Agalega Islands will enable marine patrols