At the government level, a tax on oil-based products and energy resources such as gas, LPG, coal and others has been charged at the rate of 289 yen per tCO2, starting from 2012, in Japan. The tax raised is being used to help support the building of energy-efficient infrastructure, renewable-energy production, and other measures to...
Tag: 25
A Mismatch Between Italy’s Carbon Pricing Regulations and the EU’s Emissions Trading System
In the European Union (EU), the Emission Trading System (ETS) sets out the policy architecture to introduce carbon pricing. ETS was introduced in 2003 with Directive 2003/87/EC, which was significantly reformed in 2008 when long-term climate targets for the first half of the century were presented in 2011. After the Paris agreement, the Directive was...
Indonesia Focuses on Mechanisms that Support Sustainable Land Use and Forestation Projects
Indonesia does not have a carbon tax, has not put a price on carbon, nor has an emission trading system. However, there are several sources that finance projects to reduce emissions, especially from land use, land use change, and forestry (LULUCF). In October 2019, the most recent financing mechanism was announced. The Environmental Fund Agency,...
Indian Businesses Take the Lead on Carbon Pricing
The government in India, until recently, has not put in place a carbon tax or cap in the trade system. However, leading Indian companies have set up their own carbon pricing mechanisms following a three-phase process. In the foundational phase, a company assesses how much carbon it is emitting through greenhouse gas inventories. In the...
A National ETS with a Moderate Price to be Introduced in Germany in 2021
As of 2021, Germany will put a price on each ton of carbon emitted. In December 2019, the federal government, finally, agreed to initiate a fixed carbon price through a national emission trading scheme (ETS) starting with a moderate price of 25 €/ton in 2021 and reaching as high as 55 €/ton in 2025. This...
A Low Ineffective French Carbon Tax Lies Frozen at 2018 Level
France puts a price on carbon both through a national carbon tax system and through a common cap and trade system of the European Union. The national carbon tax (officially la composante carbone, CC; more commonly known as la taxe carbone) was launched in 2014. The tax, taking the form of an excise duty, is...
The EU Emissions Trading System Seeking to Improve
The 1990s saw the first attempt of the EU to introduce a carbon tax. Strong industrial lobbying led to its failure. In 2005, EU succeeded to negotiate and introduce an alternative to a carbon tax known under the European Union Emissions Trading Systems or EU ETS. EU ETS follows the ‘cap and trade’ principle. It...
China Seeking to Set Carbon Price Through its Emissions Trading System (ETS)
China is seeking to set a carbon price through its Emissions Trading System (ETS). A specific carbon tax for industry is currently not considered in order to ease the burden on smaller businesses and avoid jeopardizing China’s economic development. An “Environmental Protection Tax” was officially introduced on January 1, 2018, however, the tax is levied...
Canada’s Carbon Pricing Strategy Moving Ahead
The national Greenhouse Gas Pollution Pricing Act (GGPPA) adopted June 21, 2018 as Canada’s carbon pricing system, establishes a greenhouse gas emissions (GGE) pricing standard as a core element of Canada’s strategy to meet its Paris Agreement targets. As of January 2019, for any provinces and territories without a carbon tax, cap-and trade system or...
Brazil Launches New Private and Public Policy Carbon Pricing Initiatives
Carbon pricing – a key tool to combat climate change – is gaining momentum all around the world, including in emerging markets such as Brazil. Since 2013, there has been rapid growth in Brazilian corporate adoption and support for carbon pricing as a mechanism to prepare for a climate-constrained future. Leading companies (including Itaú Unibanco,...