Colombia Puts a Tax on Carbon

In Colombia, one of the most biodiverse countries in the world, the government introduced a tax on fossil fuels of $5 USD per ton of carbon dioxide by late 2016. The regulation was set to start working in 2017.

he revenues are aimed at conservation actions and ecosystem preservation. The regulation has also developed tax breaks for clean energy generation as part of a broader tax reform sparked by a dramatic drop in oil prices. These taxes have introduced a stable source of financing for environmental protection activities. They have also created incentives for companies to engage in carbon offsetting activities.

The World Is Taxing Carbon

By 2017, some 24 countries had adopted or were scheduled to adopt a carbon tax in some form, according to World Bank Group’s Carbon Tax Guide. In addition, according to World Bank Group’s Carbon Pricing Dashboard platform, 51 carbon pricing initiatives have been implemented or are scheduled for implementation around the world.

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