On Tuesday, Rt. Hon Patricia Scotland KC unveiled a groundbreaking model law aimed at facilitating the implementation of carbon taxes worldwide.
This initiative aligns with the Paris Agreement’s objective of limiting global warming to 1.5°C by holding fossil fuel companies and industrial emitters accountable under the ‘polluter-pay principle.’
The Commonwealth Secretariat emphasizes that this approach ensures a comprehensive taxation of emissions across most member countries. With a focus on addressing climate change collectively, Hon. Scotland emphasized the model law’s significance for all 56 Commonwealth nations in their efforts to mitigate the severe impacts of climate change.
“Delivering the Paris Agreement remains humanity’s greatest hope. But globally, the current climate action is too weak and too slow, while the window for action continues to narrow,” she warned, highlighting the urgency of robust climate measures.
Scotland emphasized the potential benefits of adopting the carbon tax outlined in the model law, citing its role in reducing carbon emissions, attracting clean energy investments, and bolstering government revenue—all contributing to national climate commitments.
To ensure an equitable transition, the model law incorporates provisions for monitoring and mitigating the carbon tax’s impact on low-income households and vulnerable groups. Regular impact reporting, stakeholder engagement, and directing tax revenue towards supporting clean energy initiatives for underserved communities are integral components of this inclusive strategy.
Presented during the United Nations Climate Change Conference (COP28) in Dubai, the United Arab Emirates, this model law represents the Commonwealth’s latest effort in producing impactful legislation to address pressing global challenges.