The world’s leading economists are saying we should tax carbon. The politicians say we shouldn’t.
According to the World Bank, the total value of carbon pricing schemes – including emission trading schemes (ETS) and carbon taxes – has climbed to $50 billion worldwide, slightly up from the previous year. This despite Australia repealed its carbon pricing mechanism in July 2014, at the lead of prime minister Tony Abbott. In 2004 less than 1% of the world’s emissions were capped or taxed. In 2005 this climbed to 5%, while in 2015 carbon pricing covered around 12% of the world’s emissions according to the World Bank report. Though 50 billion might seem like a lot of money, progress is still slow. When you consider oil and gas is subsidized by $5.3 trillion a year, which basically means governments are paying to pollute, it all sounds like a joke.