Carbon tax is an effective step to shift towards green societies

Global climate changes have led to many environmental disasters, which have affected the planet in general, and human health in particular, and the carbon tax is one of the means that countries and organizations have resorted to apply it to reduce carbon emissions.

play a key role in reducing greenhouse gases and shifting to renewable energy, as carbon taxes guide companies away from the use of fossil fuels and encourage them to use more environmentally friendly sources.

A carbon tax can be defined as a penalty imposed on companies, which rely heavily on the burning of fossil fuels, such as coal, oil and gasoline, resulting in huge greenhouse gas emissions, thereby warming the atmosphere. The tax is imposed on each ton of greenhouse gas emissions and applied to 35 countries.

The World Bank said that carbon tax revenues and emission trading systems reached a record high of about $95 bn.

The World Bank tracked carbon markets about two decades ago, ten years ago, and found that 7% of global emissions were covered by either a carbon tax or an emission trading system.

Countries are about to launch a new carbon tax mechanism, the EU's Carbon Border Adjustment Mechanism, which was introduced at the last COP28 climate conference, to encourage companies that manufacture some environmentally harmful products outside the European Union to gradually shift to renewable energy.