formal 5K

Carbon tax

UK //ˈkɑːbən tæks// US //ˈkɑrbən tæks// Pronunciation

Definition

A financial charge on the carbon emissions produced by businesses.

Listen to definition

In simple words: A tax on companies for the carbon they emit.

Examples

• The government introduced a new carbon tax to reduce greenhouse gas emissions.
• Many companies are struggling to adapt to the rising costs of the carbon tax.
• Critics argue that the carbon tax unfairly affects small businesses.
• The revenue from the carbon tax will be used for renewable energy projects.
• A carbon tax can incentivize companies to innovate and reduce emissions.

Usage notes

Used in discussions about environmental policy; appropriate in formal contexts, such as government reports. Avoid in casual conversations.

Grammar pattern

standalone term

Memory hint

Think of 'carbon' as coal and 'tax' as the bill you have to pay.

Collocations

• implement a carbon tax
• increase in carbon tax
• support for carbon tax

Synonyms

• emission tax
• pollution tax
• carbon pricing

Common mistakes

• Confusing with 'carbon footprint', which refers to individual or organizational emissions.
• Believing carbon tax applies only to individuals, it mainly targets businesses.