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G20: The World Powers in Support of the Carbon Tax

G20: The World Powers in Support of the Carbon Tax

by Carla Andrea Fundarotto

On the part of the most important world economic powers there is the will to impose a minimum tax on CO2 emissions.

This is what emerged in the context of the G20 which was held from 7 to 11 July in VeniceThe finance ministers of the major world powers have in fact approved, for the first time, the principle of taxation of CO2 emissions.

The United States also supports the carbon tax

The so-called carbon tax, conceived with the aim of convincing companies not to pollute, had always divided the member countries of the G20.

The United States, which has long opposed this measure this time, declared that “the fight against climate change and the loss of biodiversity, as well as the promotion of environmental protection are urgent priorities”.

The choice of a “common tariff”

The Carbon border adjustment mechanism should make it possible to affect the prices of imported products, ensuring that it also integrates the cost of greenhouse gas emissions related to manufacturing.

The European proposal for now involves only five sectors: steel, cement, fertilizers, aluminum and electricity generation. A review of the mechanism is expected starting from 2026, to verify whether or not to include other sectors.

The director general of the International Monetary Fund, Kristalina Georgieva, said that “the cost of the tax would be negligible compared to what one would have to pay, in the long term, without timely action on the climate crisis”.

Discover the Friends for the Earth in evidence:

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