Carbon tax

    ESG & Governance

    A tax set at a fixed price per tonne of greenhouse gas emitted, or on the carbon content of fuels.

    A carbon tax gives certainty about the price but not about how much emissions will fall. It is simpler to run than a trading system. Several European countries and Singapore have carbon taxes. For a company, the cost is roughly emissions multiplied by the tax rate, minus any exemptions. India does not have an explicit carbon tax; its main carbon pricing tool is the CCTS.

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