As leaders of 195 countries have begun to sign the Paris agreement on climate change, the focus on a solution to a warming planet is moving from cutting emissions to calls for a global carbon tax. A carbon tax would impose a financial surcharge on fossil fuels for the cost of their polluting impact on the environment and make cleaner energy sources a more viable economic choice.
Carbon pricing, as it’s also called, is not just an activist slogan. The current call to action comes from The World Bank and the International Monetary Fund and other global institutions. The bank is already working with 18 countries, including China, to create the world’s largest cap-and-trade program. Some 90 countries have submitted plans to reduce emissions under the Paris agreement include carbon pricing in their plans, according to the New York Times.
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