Carbon tax
The carbon tax (CO₂ tax) is a government-imposed levy on carbon dioxide (CO₂) emissions. Its goal is to create incentives to reduce greenhouse gas emissions and promote the transition to more climate-friendly technologies. By pricing CO₂ emissions, environmentally friendly behavior is financially rewarded, while climate-damaging actions become more expensive.
The carbon tax is an economic tool in the fight against climate change. It is applied to the amount of CO₂ emitted during the use of fossil fuels such as coal, oil, or gas. The aim is to make climate-damaging behavior more expensive and climate-friendly alternatives more economically attractive. Revenue from the CO₂ levy can be used for various purposes, such as:
- Promoting climate protection projects: Investments in renewable energies or sustainable infrastructure.
- Relieving households: Refunds in the form of climate dividends to mitigate social hardships.
- Research and development: Supporting innovations for decarbonization.
Examples of carbon taxes worldwide include the CO₂ tax in Switzerland and Sweden or the EU Emissions Trading System (EU-ETS), which sets a price floor for CO₂ emissions.
The rate of the levy varies widely and directly impacts the operating costs of companies that use fossil fuels. Energy-intensive industries are particularly affected by the carbon tax. At the same time, it incentivizes investments in energy efficiency and low-emission technologies.
Manufacturing companies face economic and regulatory challenges due to the carbon tax. Energy-intensive industries, such as mechanical engineering, chemicals, and metal processing, must reduce their emissions to avoid rising costs associated with the levy.
