A carbon tax may soon be coming to China.
China's Energy Research Institute (ERI) and the Ministry of Finance (MOF) have concluded their report on the feasibility and necessity of implementing a carbon tax. Their findings state that China should establish a carbon tax as soon as 2012.
This report is quite significant because of the ERI and MOF's important role in forming Chinese policy. If China brings in a carbon tax it will signify the country's first application of a market-based mechanism to develop its low-carbon economy.
There are still several questions surrounding how the tax will be instituted. For example, what activities will be taxed and what the rate will be.
What is known, though, is the carbon tax would put a price on carbon pollution that is helping to drive climate change. Revenue from the tax would be used to fund cleantech companies and emissions reductions.
An official from the National Development and Reform Commission said, "We hope that a carbon tax will start to be levied during the 12th Five Year Period [2011-2016]."
Read the full story at the National Resources Defense Council: China on the Path towards Putting a Price on Carbon
Nathanael Baker is the Managing Editor of EnergyBoom. He has researched and reported on the issues of renewable energy, sustainability, and climate change for over two years. He has provided research to the New York Times and The Economist, as well as being published on different media outlets including, The Energy Collective.
Energy Boom content is for informational purposes only and is not intended to be advice regarding the investment merits of, or a recommendation regarding the purchase or sale of, any security identified on, or linked through, this site.
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