China Announces Plans to Tax Carbon Emissions

Carbon taxes are becoming an increasingly popular way for governments to earn extra revenue, whilst at the same time contributing to carbon emission targets. There are many different types of carbon tax but they generally work by taxing the carbon emissions produced by burning fossil fuels.

A senior official at the Chinese Ministry of Finance has now announced that China plans to introduce a series of new taxes which will protect the environment, including a carbon tax.

The environmental protection taxes will be collected by local tax authorities rather than the environmental protection department, although when the taxes are set to take effect is still to be released.

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Just a few days ago two US senators, Barbara Boxer and Bernie Sanders, also proposed that a carbon tax be introduced as part of a Climate Protection Act. The carbon tax would only effect less than 3,000 organisations across the US, but in doing so it covers 85% of the nation’s greenhouse gas emissions. The proposed act would end fossil fuel subsidies and protect communities and the environment from pollution caused by fossil fuel operations.

It is likely that the proposal will meet strong opposition, especially from fossil fuel lobbies, just as Australia’s Prime Minister Julia Gillard has been attacked for introducing a carbon tax there. For once maybe China’s style of governance will prove to be a boon.

By. Joao Peixe of Oilprice.com