Carbon tax is a tax based on carbon emissions. The government imposes fees on activities that produce greenhouse gases according to their emissions, especially on companies or individuals that use high-carbon energy such as fossil fuels (such as coal, oil, and natural gas). The purpose of carbon tax is to encourage the reduction of greenhouse gas emissions and promote the transition to clean energy to address climate change by increasing the cost of carbon emissions.

Subject of taxation: Carbon tax is mainly imposed on enterprises, industries or individuals that directly use or consume fossil fuels, usually including power generation, manufacturing, transportation, oil and gas and other industries.

Tax rate: The government sets a certain tax rate, usually per ton of carbon dioxide emissions. The tax rate can vary according to the policies, economic conditions and climate goals of different countries or regions. The higher the tax rate, the stronger the motivation for enterprises and individuals to reduce carbon emissions.

Tax use: Carbon tax revenue can usually be used to support clean energy projects, improve energy efficiency, promote green technology innovation, or to reduce the economic burden of low-income groups to alleviate the problem of rising living costs that may be caused by carbon tax.