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The New Economy: Global Carbon Tax Moves From Idea to Reality

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Apr 25, 2016 5:45 PM ET

The New Economy: Global Carbon Tax Moves From Idea to Reality

As leaders of 195 countries have begun to sign the Paris agreement on climate change, the focus on a solution to a warming planet is moving from cutting emissions to calls for a global carbon tax. A carbon tax would impose a financial surcharge on fossil fuels for the cost of their polluting impact on the environment and make cleaner energy sources a more viable economic choice.

Carbon pricing, as it’s also called, is not just an activist slogan. The current call to action comes from The World Bank and the International Monetary Fund and other global institutions.  The bank is already working with 18 countries, including China, to create the world’s largest cap-and-trade program. Some 90 countries have submitted plans to reduce emissions under the Paris agreement include carbon pricing in their plans, according to the New York Times.

About 40 countries, including all 28 members of the European Union, have introduced carbon pricing policies. Four of Canada’s provinces and territories have some form of carbon pricing. And California and nine Northeastern states have adopted carbon cap-and-trade policies. The idea of a carbon tax is moving from idea to reality very quickly.

I’m John Howell for 3BL Media.

Episode Sources: 

The New York Times

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