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♤ Carbon tax is the potential alternative to the ‘cap and trade’ method currently used by the protocol.
♤ This tax is based on the amount of carbon contained in a fuel such as coal, etc.
♤ The aim of this tax is to cause less fossil fuel use and hopefully cause an incentive to use other sources of energy.
♤ If the carbon tax was implemented it would be gradual and start at a low amount and increase over time to allow better industry and technology to be developed.
♤ Five primary reasons why a carbon tax could prove more beneficial than the ‘cap and trade’ system.
1. Predictability - the tax could help predict energy prices which might also help investments in energy efficiency and alternate fuels.
2. Implementation - a carbon tax could be put into use much quicker compared to the legalities that go along with the ‘cap and trade’ method.
3. Understandable - the carbon tax is simpler to understand and may therefore be embraced more by everyday people
4. Lack of Manipulation - special interest groups have less of a chance to manipulate a carbon tax because of its simplicity.
5. Rebates - like other forms of taxes, the carbon tax could be open for rebates to the public
India’s Position on carbon tax:
♤ India will bring a WTO challenge against any “carbon taxes” that rich countries impose on Indian imports.
♤ “If they impose such a tax, we will take them to the WTO dispute settlement forum,” “We will deal [with this] through hard negotiations. Such barriers are not going to be WTO-compatible and we will fight it.” - the minister, MoEF
♤ Both United States and European Union have discussed the possibility of imposing tariffs or other forms of “border carbon adjustment” on goods imported from countries with tax regulations on greenhouse gas emissions.
Do you know?
Generally, softwood tracheids are preferred over hardwood fibers for papermaking because the tracheids of conifers are longer (about 2-4 mm) than are hardwood fibers (0.5-1.5 mm).