About Carbon Tax
- A Carbon Tax is an environmental tax levied on the carbon content of fossil fuels such as coal, oil, and natural gas.
- The objective is to reduce greenhouse gas emissions by creating a financial disincentive for pollution and encouraging clean energy alternatives.
- It is calculated based on the amount of CO₂ or other GHGs emitted and promotes a market-based climate solution.
Types of Carbon Tax
- Emissions tax: Tax on total GHG emissions, based on the carbon content of fuels used.
- Energy tax: Levied on fossil fuel consumption, calculated from carbon or energy usage.
- Cap-and-Trade System: Sets a cap on emissions; permits traded in a carbon market to incentivise reduction.
- Border tax adjustment: Applies carbon tax on imported goods based on emissions during production to prevent carbon leakage.
Carbon Tax in India
- India currently does not have a nationwide carbon tax, but there have been proposals to introduce one.
- In 2015, India proposed a carbon tax of INR 50 per metric ton on coal production/import, but it remains unimplemented.
- Some states, like Tamil Nadu, have introduced state-level carbon levies, particularly on coal used in electricity generation.
- India promotes clean energy and emission reductions through initiatives like:
- National Clean Energy Fund
- National Solar Mission
- Energy Conservation Building Code (ECBC)
About the International Maritime Organization (IMO)
- The IMO is a United Nations specialised agency responsible for the safety, security, and environmental performance of international shipping.
- It contributes to SDG 14: Conserve and sustainably use oceans, seas, and marine resources.
- While the IMO sets global maritime rules, their enforcement depends on member states converting them into national laws.
- The IMO also deals with legal matters like liability, compensation, and maritime traffic facilitation.
