The government sets a fee that emitters must pay for each ton of greenhouse gas emissions.
This was initially proposed by the European Union. A carbon tax is simply putting a fee on the emission of carbon-based fuels. The purpose of a carbon tax is to indicate the true cost of burning carbon. But India has not yet accepted the carbon tax in its true sense due to economic reasons.
Watch this video featuring Aditi Aggarwal, LawWiser, where she explains the concept of the carbon tax and why it is needed. She also takes us through the concept of Carbon tax in India and its related policies.
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