Carbon Tax

China is to introduce a set of new taxation policies designed to preserve the environment, including a tax on carbon dioxide emissions, according to a senior official with the Ministry of Finance (MOF). This is in addition to establishing seven pilot carbon markets this year with the goal of creating a national cap-and-trade scheme by the end of 2015. In an article published on the MOF's website Jia Chen, head of the tax policy division, said the government will collect the environmental protection tax instead of pollutant discharge fees, as well as levy a tax on carbon dioxide emissions.

The row over including the greenhouse gas emissions from civil aviation under the European Union’s Emissions Trading Scheme (EU-ETS) notwithstanding, France’s new government wants to the EU to impose a carbon tax on goods imported from outside Europe. The idea is not new, having originally been floated by the European Commission in 2008 and championed by former French President Nicolas Sarkozy ahead of the 2009 Copenhagen climate summit. At the time it was dismissed as being overtly protectionist.

While the European Union said it is prepared to adopt counter-retaliatory measures in the face of retaliation by countries to the EU airline carbon emissions tax, experts noted that such moves are likely to be futile.

Algae-based biofuel is being tested by shipping giant Maersk Line between Europe and India. The importance of cutting emissions from global shipping as more vigorous calls for carbon tax on the industry grow takes on a greater significance.

The European Union say that, when airlines are incuded in carbon emissions cap-and-trade scheme next year, its will allow airlines to emit 85 percent of their carbon dioxide limits free in the hope they will use the money to modernize their fleets, according to the Associuated Press.