Taxation an acceptable way to get better climate?
László Kovács, the European commissioner for taxation, hopes that taxes can help saving the environment. He has said that, taxation should in the first place discourage what is undesirable, rewarding at the same time all sorts of positive behaviour.
There has been a consultation on market-based instruments for the environment earlier this year. Later this year there will come a report on the contributions received from the consultation and proposals for action in 2008. The most well-known market mechanism so far is the pan-European Emission Trading Scheme which was launched in January 2005. It is mostly the northern countries like Sweden, Denmark, Finland, Germany, UK and the Netherlands which has promoted a “green tax shift” so far. Some business organisations are negative in general to new taxes and regulations but there are also organisations in favour for taxations as a fair way in achieve a shift towards less emissions of greenhouse gases.