Climate change on the planet is causing the UN to sound the alarm. Global warming is exacerbating the impact of weather-related disasters and can lead to significant losses in income and productivity over time. Emerging economies in the equatorial regions will suffer the most from rising temperatures. That is why about 200 countries signed the Paris Climate Agreement in 2015 to fight global warming. In particular, the EU intends to make its economy carbon neutral by 2050. The industries will now have to deal with more issues related to sustainable business conduct, including in the field of ecology, than in the past when they had to think mainly about the cost of production.
First of all, I believe that fossil fuels contribute to global warming. Carbon dioxide (CO2) emissions have always and rightly been the focus of scientists, as they account for 65% of all that phenomenon we call global warming. The main efforts being made to this end by the countries are primarily focused on reducing the volume of CO2 emitted into the atmosphere. Measures are being taken here in a variety of ways, from imposing taxes on carbon emissions to limiting the use of fossil fuels. Positive aspects of the carbon tax include a clear forecast of prices for greenhouse gas emissions and investment confidence. This tax eliminates hedge funds and the use of secondary securities. Economists’ statement on carbon dividends creates more conditions for long-term business planning and means control over high-emission industries through export subsidies and carbon export tariffs. It gives more awareness, understanding, and public acceptance.
However, I am skeptical about the introduction of economic instruments to regulate CO2 emissions. Tax rates set by politicians or officials are often irrational. This statement does not guarantee that carbon emissions will be reduced. People will still be willing to pay more to use older technology because they are familiar with them, either because they have infrastructure investments or property-related assets. I think that at the international level, the carbon tax is not always conducive to climate change regulation.