Petrochemical company has a massive carbon tax to pay for clean-up of smog
Petrochemical giant PetroChina announced on Tuesday it will set a carbon tax of $1.5 billion a year for the next decade and $1 billion a month thereafter.
The tax will be paid by the companies and other businesses that make and use their products.
The levy will be part of a broader $1 trillion in emissions reduction targets set by the Organization for Economic Cooperation and Development (OECD).
“The objective of the carbon tax is to provide an incentive to companies to invest in clean-energy technologies and make them more competitive with their competitors,” said PetroChina’s deputy CEO, Chen Jian.
“The carbon tax can be paid on a monthly basis and will encourage companies to shift to sustainable practices.
It will also help companies to pay more into their pension plans.”
PetroChina says the carbon levy will help the company reduce its greenhouse gas emissions and is expected to raise $5 billion to $7 billion annually.
In 2016, the company announced a $1,000 carbon tax levy to fund its clean-ups.
“This carbon tax will help PetroChina maintain its competitiveness in the global marketplace, strengthen its leadership position, and promote environmentally-friendly activities across the country,” said Chen.
PetroChina said the carbon taxes will take effect in 2020 and 2021.