Carbon Tax: Moving Towards a Net-Zero Emissions Future

In the wake of the 21st century, climate change has emerged as the biggest lifethreatening challenge with a potential of evolving into the largest, if not the most complex, economic opportunity since the industrial revolution. While narrowing down its focus to carbon tax as a regulatory fiscal aspect of international economic law, this article explores the potential role of the tax in moulding this economic opportunity in line with the commitments assumed by countries under the 2015 Paris Agreement. The issue is whether imposition of carbon tax or restructuring tax rates can have a significant impact in regulating carbon emissions by rationally pushing consumers, investors, and producers, towards an environmentally sound direction. To answer this, the article investigates three carbon-tax implementation case studies;British Columbia, South Africa, and the revision of European Union Energy Taxation Directive in the context of aviation, with the aim to explore the scope of contributing factors – from adequate tax rate determination to optimum tax revenue use – in successfully curbing carbon-based emissions. Drawing upon the policy-efforts of the countries in the case studies, the challenges and the solutions, the article proposes a suggestive policy model of carbon-tax in the wake of COVID-19 pandemic, as the way forward in ensuring global carbon-neutrality.Alternate :In the wake of the 21st century, climate change has emerged as the biggest lifethreatening challenge with a potential of evolving into the largest, if not the most complex, economic opportunity since the industrial revolution. While narrowing down its focus to carbon tax as a regulatory fiscal aspect of international economic law, this article explores the potential role of the tax in moulding this economic opportunity in line with the commitments assumed by countries under the 2015 Paris Agreement. The issue is whether imposition of carbon tax or restructuring tax rates can have a significant impact in regulating carbon emissions by rationally pushing consumers, investors, and producers, towards an environmentally sound direction. To answer this, the article investigates three carbon-tax implementation case studies;British Columbia, South Africa, and the revision of European Union Energy Taxation Directive in the context of aviation, with the aim to explore the scope of contributing factors – from adequate tax rate determination to optimum tax revenue use – in successfully curbing carbon-based emissions. Drawing upon the policy-efforts of the countries in the case studies, the challenges and the solutions, the article proposes a suggestive policy model of carbon-tax in the wake of COVID-19 pandemic, as the way forward in ensuring global carbon-neutrality.

Intellectual Property and International Clean Technology Diffusion: Pathways and Prospects

International clean technology diffusion is essential to mitigate and adapt to climate change, while fast and optimal diffusion can be prevented by the paywall of patents. This article explores the deficiency in clean technology diffusion caused by the legal fragmentation and rule complex of international environmental law and intellectual property law. It systematically examines three pathways to foster international clean technology diffusion through: restriction of intellectual property, including imposing external restraints in environmental law;striking internal balancing in maximizing TRIPS flexibilities;and keeping the status quo. It argues that treaty pathways may not work, and an operable pathway to promote clean technology diffusion is to maximize and consolidate TRIPS flexibilities in national laws. This option challenges the popular proposal of a “Doha-like” declaration on TRIPS and climate change due to the paralyzed multilateral trade mechanism, asymmetrical negotiation power of developing countries, prolonged negotiation process, and categorization problem in treaty negotiations.