Carbon Tax, the only solution to reduce carbon emission levels, globally

Carbon Tax

Summary:

  • President Joe Biden’s climate policy focuses on tax credits to spur the development of new energy sources, but a move to add a carbon tax to the legislation has been delayed.
  • The US government is pursuing a fee on leaked methane, a major source of greenhouse gas emissions, causing consumers to be concerned about rising energy prices and putting a price on carbon

Immediate effect for reducing Carbon Levels

The world needs to cut carbon emissions, and one method to do so is through a carbon tax, which the United States has debated for decades.

With urgent calls to reduce global greenhouse gas emissions, one of the main topics of debate among world leaders at the COP26 meeting in Glasgow was placing a price on carbon. According to Lord Greg Barker, executive chairman of EN+ and co-chair of the Carbon Pricing Leadership Coalition, there is growing consensus on a worldwide carbon price.

“To achieve that massive change to the low-carbon economy, we need countries to join together and agree on international norms,” Barker told reporters in an interview. “It would be beneficial for the world if carbon was priced average.”

To date, Barker says 69 nations have ranged carbon price from $1 to $139 / metric ton and this excludes the U.S.

The Biden administration has proposed spending of $555 billion to combat climate change, albeit the plan does not include carbon pricing. A proposed methane fee incentivizes oil and gas corporations to minimize methane emissions, according to the law.

Considering both, carbon price and emission trade

Carbon import fees and emissions trading have been proposed in the United States for carbon-intensive products imported into the country. “However, carbon import tariffs only make sense if there is some type of domestic carbon legislation in the United States,” argues Richard Newell, president of Resources for the Future, nonpartisan energy and environmental research organization.

The Biden administration holds a government-wide plan in spare to explain how climate change may impact all aspects of the American economy. The plan was part of a larger plan to cut greenhouse gas emissions in half by 2030 and move to a zero-emissions economy.

Carbon pricing could be raised by taxing greenhouse-gas-intensive commodities and services, such as gasoline, or by charging individual carbon emitters. The Climate Leadership Council is one of the organizations lobbying for carbon-intensive items to be priced as part of a US climate plan. This is because, according to Carroll, it will go further and quicker than any other single climate policy action, while also stimulating economic innovation and making households better off financially.

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