Article explores the merits and pitfalls of introducing carbon taxes in key jurisdictions and globally. While a number of countries have introduced or tried to introduce some type of carbon tax as a tool to discourage polluting activities, a common global approach to implementation and enforcement would likely have a far more positive environmental impact. The article notes carbon tax efforts in the United States, Indonesia and the EU, as well as China’s alternative approach through its national emissions trading scheme (ETS). The article concludes that a successful global carbon tax program would require consensus through global policy driven by the Organisation for Economic Co-operation and Development, with the support of the G7 or the G20. Strides towards a net-zero planet took place at the 2021 United Nations Climate Change Conference, more commonly referred to as COP26; however, many commentators felt that the politicians missed the mark.
Ugo Onwumelu, a trainee in the Private Credit practice, contributed to this article.