Taxes can stop global warming

Earth needs our help to combat climate change. Environmental taxes can help finance measures to reduce environmental damage.

Climate change is one of the most important issues of our time. It refers to a change in the pattern of weather over a period of time. One of the causes of this change is global warming which is the gradual heating of the Earth’s surface, oceans and atmosphere. Global warming is mainly a result of human activities such as the burning of fossil fuels, like coal and oil, that pump carbon dioxide and other greenhouse gases into the atmosphere. 

Carbon tax to meet climate change challenge

The EU has made it its priority to tackle climate change and minimise its effects. It has led the world towards renewable energy sources and set up the world’s first and largest Emissions Trading System which placed an overall limit on all CO2 emissions from power stations, energy-intensive industries and civil aviation. 

EU leaders are committed to transforming Europe into a highly energy-efficient low carbon economy. In addition, the EU has set itself the long-term goal to reduce greenhouse gas emissions by up to 85 % by 2050. The EU Commission President Ursula von der Leyen has also put climate change high on the agenda and wants Europe to become the world’s first climate-neutral continent.

To achieve these and other ambitious targets, EU leaders are closely examining energy tax, which falls under the umbrella of environmental taxes. 

Many proposals have surfaced regarding how environmental tax can be best used and adapted in the future to solve the issue of climate change. Some considerations include implementing higher minimum tax rates on energy, fossil fuel levies and ending waivers for the air and sea transport sectors. There are also discussions about introducing a type of tariff on carbon dioxide and taxing imports from third countries that have a poor sustainability rating.  

Educating the next generation of taxpayers 

The TAXEDU digital platform is helping to spread the message of how important taxes, like energy tax, is for the environment and society. Through this platform, students can find out more about taxes by visiting the Training Catalogue which has stimulating and interactive resources. 

TAXEDU is helping to build the next generation of taxpayers who understand the impact tax can have in solving environmental issues like climate change.