China to implement new carbon taxes

China's latest Five-Year Plan outlines new environmental taxes for polluters.

According to the Ministry of Finance, China will introduce a new set of taxation policies aimed at preserving the environment. The government will be able collect a general “environmental protection tax”, instead of the previous “pollutant discharge fees”, and will also begin taxing carbon dioxide emissions.

In terms of environmental legislation, the new carbon levies will put China ahead of both the US and Europe (excluding Norway and Ireland who currently do not tax carbon emissions. Head of Climate Change Initiatives at the World Economic Forum, Thomas Kerr, claims that although the Chinese government are “starting small”, the legislation is still a “very important move” for global environmental protection.

After smog choked the nation’s capital for the most part of January and February, the government is anxious to be seen tackling the problem head-on.

However, despite the positive signals sent by the new legislation, some are questioning the government’s ability to follow through.

In 2010, the same department promoted a carbon tax of 10 yuan per ton in 2012, rising to 50 yuan per ton in 2020 – tariffs that have yet to materialise.

Other parts of the Five-year Plan included safeguarding the environment against dangerous chemicals, introducing emission trading schemes and new air quality standards for 47 of China’s largest cities.