Environmental Taxation

1. Introduction

Environmental taxes are used to combat pollution, reduce greenhouse gas emissions, and encourage cleaner technologies. The carbon tax, emission trading scheme, and other related tax measures aim to balance economic growth with environmental preservation. Environmental taxes in Asia are becoming increasingly important as governments seek to address pollution, promote sustainable practices, and mitigate the impacts of climate change. Following their adoption of the Paris Agreement in 2016, the majority of Asian nations are now obligated to restrict their emissions and commit to a UN Framework Convention on Climate Change target. It is important to analyze Asian countries specifically because they represent a sigS. 258nificant share of global emissions and economic output yet exhibit wide diversity in legal systems and economic development. This chapter of the book will explain the legal basis for Asian countries to adopt environmental taxes, discuss the current developments surrounding environmental taxes in Asia and challenges in selecting environmental tax types in Asia, and provide an analysis of how the European Union Cross Border Adjustment Mechanism (EU CBAM) affects A...