Carbon Tax

A carbon tax is a financial charge imposed on companies based on the amount of carbon dioxide (CO2) they emit into the atmosphere. The goal is to encourage businesses to reduce their greenhouse gas emissions, which contribute to climate change. By making it more expensive to pollute, the tax incentivizes the use of cleaner energy sources and promotes innovation in sustainable practices. The revenue from the tax can be used for environmental projects or to reduce taxes in other areas, helping to balance economic growth with environmental responsibility.