Understanding the low-carbon economy at once: deciphering the past and present of the low-carbon concept

Introduction: Why should we understand the concept of low carbon?

In today's era of climate change, "carbon" is no longer a simple chemical element, but a globalcircular economy Sustainable developmentkeywords. Whether it is an enterprise, government or individual, we must face up toReduce carbon emissionssubject. This article will give you an in-depth analysis oflow carbon economyvarious core concepts.

Analysis of low-carbon concepts: If you understand these words, you will be an expert in low-carbon economy

1.Carbon Pricing: Using economic leverage to control carbon emissions

carbon pricingIt is a kind of economic means to reducegreenhouse gas emissionsstrategy. To put it simply, it means givingCarbon emissions"Add a price tag" and letCarbon emissionsCosts are more concrete and tangible.

carbon pricingThe main mechanism:

• carbon tax(Carbon Tax):Directly per unit (per ton CO₂)Carbon emissionstax.
• carbon fee(Carbon Fee):More flexible, often targeted at specific industries or activities, and earmarked forCarbon reduction.
• carbon trading(Emissions Trading):set upCarbon emissionsCaps that allow businesses to buy and sellCarbon emissionsquota (i.e.carbon rights).

2.Carbon Tax: Say “no” directly to carbon

carbon taxIt's the governmentgreenhouse gas emissionsTaxes levied directly. The purpose is to improveCarbon emissionscosts, incentives for businesses and individualsReduce carbon emissions.

Implementation case:

• Nordic countries such as Sweden started implementing it as early as 1991carbon tax:at presentcarbon taxTax rates exceeding €140 per ton are considered validReduce carbon emissionsmodel.

3. Carbon Fee: A carbon pricing tool with a low carbon price and dedicated funds

carbon feeandcarbon taxSimilar, the difference lies in the different competent authorities, socarbon priceThere are also differences in the elasticity of spending.

「carbon fee"You can earmark funds forReduce carbon emissions, for example for developingCarbon reductionTechnology may establish a climate fund, "carbon tax” Then it is mixed into the national fiscal revenue and can be used for social welfare or infrastructure construction.

Implementation case:

2024/10 /7 Taiwan Ministry of Environmentcarbon feePricing: The general rate is NT$300 per ton of carbon, which will be gradually increased in stages in the future.

carbon taxVScarbon fee The difference is clear

category	carbon fee	carbon tax
Competent authority	Special funds earmarked by the Environmental Protection Agency	Ministry of Finance unified revenue and expenditure
use	Only for climate change reduction and adaptation	Green fiscal and tax reform, such as tax cuts,carbon taxTax returns to all people, reserve carbon bond fund
Carbon reduction effect	carbon priceLow, little effect	carbon priceHigh, great effect
Impact on the public	Oil, electricity and consumer spending increased	throughcarbon taxReturns can increase net income
impact on social economy	Still maintaining a highly polluting brown economy	transition togreen economy, become more internationally competitive, while improving income distribution and promoting social equity.

4. Carbon Credit: a tradable “carbon emission permit”

carbon rightsrepresents a certain amountgreenhouse gas emissionsQuotas can be bought and sold between businesses.

Businesses can:

greenhouse gas emissions More: Purchase additionalcarbon rights

greenhouse gas emissions less: will remaincarbon rightssell to other companies

5. Carbon Leakage: A “hidden trick” used by companies to avoid carbon reduction

Strict carbon controls may cause companies to move production to areas with looser carbon controls, causing overall globalCarbon emissionshas not been substantially reduced.

Specific explanation:

If only a small number of countries and regions implementcarbon pricing, will lead to highCarbon emissionsindustries have moved to developing areas with looser carbon controls. This may be done in a carbon control zoneCarbon emissionsReduced, but overall globalCarbon emissionsHowever, it has not declined. It has even declined because the technology in developing areas is relatively backward.Carbon emissionsInstead of decreasing, this process is called "carbon leakage”.

Implementation case:

Carbon Border Adjustment Mechanism CBAM EUIt will be officially implemented in 2026 to prevent blockagecarbon leakage

The International Monetary Fund (IMF) proposes a global carbon floor price mechanism, establishing carbon floor prices of US$25, US$50 and US$75 per ton for low-income, middle-income and high-income economies respectively.

6. Carbon Neutrality: the ultimate carbon reduction goal

carbon neutralRefers to the performance of an enterprise or country within a certain period of timeCarbon emissionsBalanced with carbon absorption. The ultimate goal is to make the wholeCarbon emissionsachieved if it is zeronet zero emissions target.

Implementation methods include:

• reduce directCarbon emissions
• investrenewable energy
• Buycarbon rights
• Support carbon sequestration projects (such as afforestation)

Implementation case:

The Paris Agreement in 2060 Globalcarbon neutralpromise.

7. Carbon Offset: Another way to offset carbon emissions

carbon offsetis a kind of investmentgreen projectto balance or offset oneselfCarbon emissionsmechanism.

Businesses or individuals can receive funding throughReduce carbon emissionsor carbon sequestration projects to offset what they cannot completely eliminateCarbon emissions.

carbon offsetMain types of:

1. Renewable energy projects:Invest in clean energy such as solar and wind energy
2. Afforestation and reforestation:Planting trees to absorb carbon dioxide
3. Methane Capture Plan:Reduce methane emissions from landfills and more
4. Energy efficiency improvements:Technology and infrastructure to support more efficient energy use

Low carbon concept relationship comparison table

concept	definition	main purpose	Implementation subject
carbon pricing	rightCarbon emissionsSet economic value	reducegreenhouse gas emissions	Government, international organizations
carbon tax	directly toCarbon emissionsrelease taxes	improveCarbon emissionscost	government
carbon fee	Set for specific industriesCarbon emissionsPay the fee	control specific areasCarbon emissionsput	Government, regulatory agencies
carbon rights	tradableCarbon emissionsput quota	Flexible managementCarbon emissionsput	enterprise,carbon tradingmarket
carbon leakage	avoidcarbon controlphenomenon	identifyCarbon reductionloopholes	International organizations and research institutions
carbon neutral	Carbon emissionsbalance of release and absorption	accomplishnet zero emissions	Enterprise, country
carbon offset	Offset by investing in green projectsCarbon emissionsput	make up for what cannot be directly reducedCarbon emissionsput	Enterprises, individuals, international organizations

Conclusion: Working together towardslow carbonfuture

understand theselow carbon economyConcept is not only an issue for enterprises, but also a common responsibility of all mankind. Through correct understanding and positive actions, we can jointly build a betterSustainable Earth Ecosystem.

References

Intergovernmental Panel on Climate Change (IPCC) Report

World Bank Carbon Pricing Report

Taiwan Environmental Protection Agency Carbon Management Information

International Energy Agency (IEA) Carbon Emissions Report

RECCESSARY News