Diversified emissions standard needed before carbon tax

Experts believe certain emissions-related policies must be introduced before China can levy carbon, environmental and resources taxes as it reportedly may do as part of its next five-year plan.

A senior researcher of The National Development and Reform Commission was quoted by the China Daily recently saying that the government would levy such taxes only if they are helpful to the mitigation of carbon emissions.

Before any new tax measures can be introduced, “the government needs to set up a set of reasonably diversified standards of emissions tax to cater for different locality situations,” said Windson Li, a senior consultant in Beijing at DLA Piper. “A flat and rigid standard may be harmful to some underdeveloped regions.”