Net Zero

How Not to Freak Out About a Carbon Tax

To cut emissions fast, many countries are turning to a policy tool that is backed by years of research.

    

Photographer: Bartek Sadowski/Bloomberg
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Indonesia is proposing a carbon tax of about $5 per ton of emissions in a bid to raise state revenues and meet climate goals. That’s less than a tenth of the current price of carbon permits in the European Union’s Emissions Trading System. And yet it has faced criticism from industry that it will slow down economic growth.