May 27, 2021

Andrew Campbell 

Green taxation will bring benefits for Europe. Positive promotions of green taxation will make a sustainable environment, enlarge tax base, and mitigate labor taxes from workers.

With these positive benefits, the European Commission decided to make a change of taxation in support of Green Deal, according to European Executive Vice-President Valdis Dombrovskis. Mr. Dombrovskis mentioned that the environmental tax measurement alternation will help EU reach a target of 55% emission reduction for 2030. 

The alternation of green taxation includes a carbon border adjustment measurement and a revised version of Energy Taxation Directive. The benefit of the carbon border adjustment will help EU regulate carbon pricing for both imported and domestic products to cope with climate change. This will implement gradually, eventually meet WTO agreements, and help settle the global carbon pricing. Meanwhile, the change of Energy Taxation Directive will take departments of aviation and maritime into considerations.  

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