Sustainable development is not the way, but the only option for the international community to embrace to achieve global economic recovery and sustain the future’s challenges. The 17 UN Global Goals (or SDGs) are more than just an aspirational framework for governments. They are a roadmap for business opportunities to transform them into a successful business that can sustain the current and future challenges. A shift to a sustainable model of an economy, with more greener emphasis, could create 24 million new jobs globally by 2030 if the right policies are put in place. Only the goods and services sector can generate over US$ 2.5 trillion in annual income, and this is growing at a rate of over 8% per year.
As there is a broad consensus on the need for a carbon tax to cut emissions, and since the carbon tax has been in circulation in some countries of the world for about three decades now, the search for the right carbon tax is still going on.
The carbon tax has provoked criticism and fierce discussions on how to implement it right. If implemented right, it would be a great asset in fighting climate change and boosting economic recovery and sustainable development.
In the aftermath of the Covid-19 pandemic, there is an excellent international momentum for an economic reset and green recovery. Revolutionising the tax system would be the next logical step.
The new carbon tax must be calibrated against C02 levels created during production and mandatory end-of-product-life recycling. It would put the Government on the front foot by forcing through a more enlightened and joined-up approach to understanding the ‘real cost of goods production. Tax avoidance by large corporations would be very difficult under this system.