How does a carbon tax work?

By taxing emissions, it incentivizes businesses to update their operations so they reduce their contribution to global warming.

A carbon tax requires 3 key elements:

Pricing – governments must set a price on greenhouse gas emissions.

Monitoring – we need a reliable way to measure the amount of emissions released by companies.

Enforcement – taxes, fines, and other methods for enforcing the carbon tax must be put in place to keep companies honest.

Some countries have already implemented carbon taxes.

Center for Climate and Energy Solutions

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