Green taxes: Combating climate crisis

Environmental taxes are essential instruments in addressing the climate crisis. By imposing taxes on activities and products that contribute to pollution and greenhouse gas (GHG) emissions, these measures incentivize greener practices and help reduce the ecological footprint of businesses and individuals.

The concept of environmental taxes dates back to 1920, with significant adoption in OECD countries since the 1990s due to a rise of environmental awareness through the IPCC and UNFCCC. These taxes operate on the "polluters pay" principle, requiring those responsible for pollution to bear the costs of their actions. In 2023, the UK's environmental taxes raised GBP52.5 billion, a 4.9% increase from the previous year.

However, continuous refinement and expansion of these taxes are necessary to maximize their impact. Environmental taxes play a crucial role in the transition to a sustainable, low-carbon economy, and policymakers, businesses, and individuals must collaborate to enhance these taxes and invest in green technologies.

This article explores the concept of environmental "green" taxes, and the role they play in meeting the sustainable goals every country is trying desperately to meet. Looking at empirical data and statistical analysis, the article will show you the true meaning of environmental taxes and the steps needed to make the impact greater, and greener.