Recently, the efforts of the European Union on decarbonization have been significantly intensified, and the instruments of the legislative package suitable for 55, accordingly, the reform of the EU ETS and the new regulation on the Carbon Boundary Mechanism (CBAM) have become the main drivers that will act in the direction of increasing carbon taxation, which imposes additional costs on companies depending on carbon emissions.
If the carbon price has until now been an abstract concept or known only to the few economic entities that own stationary installations covered by the EU ETS greenhouse gas (GHG) emissions trading scheme, this era is coming to an end. The reform of the EU ETS system envisages extremely ambitious decarbonization targets aimed at reducing GHG emissions by 62% by 2030.
Carbon taxation began to take shape in the 1990s with growing awareness of the impact of greenhouse gas emissions on the global climate. Such international initiatives as the Kyoto Protocol (1997) and the Paris Agreement (2015) are aimed at reducing emissions and limiting the increase in global temperature.
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The article was signed by Ana Maria Iordake, partner at D&B David si Baias and Dora Christian, senior manager at PwC Romania
Article supported by PwC Romania
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.