Goal 13

Exploring “Carbon Tax Policy” as a Solution to Mitigate Climate Change

You are currently viewing Exploring "Carbon Tax Policy" as a Solution to Mitigate Climate Change

The Sustainable Development Goals (SDGs) are global shared objectives comprising 17 main goals that create sustainable balance across three dimensions: environment, economy, and society, aiming toward a world that leaves no one behind by 2030.

Among all 17 main SDG goals, Goal 13: Climate Action focuses on climate change and its impacts on the environment, which is one of the “urgent” issues that the world is currently paying attention to.

When discussing climate change, the primary cause is the emission of greenhouse gases into the atmosphere, which mostly results from industrial combustion. Recently, industrial facilities have increased combustion due to accelerated business operations aligned with economic growth, or deforestation as humans require more natural resources. All of these factors contribute to climate change, particularly global warming, which will continue to impact the living conditions of life on Earth.

How Does the Carbon Cycle Affect Climate Change?

Climate change is a naturally occurring phenomenon, partly from a cycle called the carbon cycle, which begins with plant photosynthesis that requires carbon dioxide to produce glucose for energy, or creating food for themselves and providing energy for primary consumers or herbivorous animals.

To explain more simply, this is because animals cannot produce energy within their bodies and therefore need energy from consuming other animals or plants. According to food chain principles, these animals are consumed by carnivores or omnivores, transferring energy up to tertiary consumers or organisms at the top of that particular food chain. Simultaneously, this cycle can generate greenhouse gas production because these organisms need oxygen for respiration, which becomes methane that reacts with oxygen to produce water and carbon dioxide.

Additionally, carbon dioxide may be produced when decomposers or scavengers that consume dead plant and animal matter cannot completely decompose the carcasses due to various factors such as unfavorable environmental conditions. These carcasses become buried under soil and minerals. Over many years, pressure and heat will transform these carcasses into coal or other resources that industrial facilities use as production resources for goods and services, or what we commonly know as “combustion,” which increases carbon dioxide levels in the atmosphere.

Impact of Carbon Dioxide on Marine Life and Humans

Carbon dioxide emissions are a problem that may affect the living conditions of life on Earth, particularly marine animals. Considering the carbon cycle principles, carbon dioxide emissions into the atmosphere result in “ocean acidification” because water has the property of dissolving carbon dioxide, causing seawater to become acidic and affecting marine life with shells or exoskeletons. The shells or exoskeletons of these organisms are made from calcium carbonate, which can be destroyed by acid. This means that acidic seawater will affect these organisms and make them vulnerable to predators since they cannot create shells and exoskeletons to protect themselves.

This will reduce the population of certain animal species, resulting in insufficient resources for marine ecosystems and potentially causing marine animal population problems or imbalances, including coral reefs in the ocean, which will be similarly affected.

Not only marine animals are affected, but humans are also impacted by this phenomenon. When humans breathe, carbon dioxide enters the lungs, and when humans absorb a certain amount of carbon dioxide into the bloodstream, it can make human blood acidic like seawater, since blood contains 55% water or more than half of other blood components. This may directly affect our health, such as respiratory problems, or if exposed to large amounts of carbon dioxide, it may severely impact the brain later.

Policies Created to Reduce Carbon Dioxide Emissions into the Atmosphere

Besides problems affecting marine life and humans, carbon dioxide in the atmosphere is another significant issue. Currently, many industrial facilities conduct business that generates substantial carbon dioxide emissions into the atmosphere, and this is an issue that many countries prioritize because carbon dioxide emissions into the atmosphere constitute “market failure” since these companies or businesses emit carbon dioxide in quantities that can create negative externalities, or when companies produce goods and services that impact third parties or the environment.

For this reason, many countries have implemented “carbon tax” policies to reduce negative externalities. Carbon tax is a tax collected by the government from companies that produce carbon dioxide, calculated as carbon tax per unit.

Using carbon tax policy is like creating choices for companies. If companies can change their production methods without emitting carbon dioxide into the atmosphere, they would not need to pay taxes. The true purpose of carbon tax is to encourage people to shift their interest toward green energy.

For example, Singapore has raised its carbon tax rate to 25 Singapore dollars (approximately 600 baht) per ton of carbon dioxide emissions into the atmosphere. Singapore aims to reduce carbon dioxide emissions that impact atmospheric changes to zero by 2050.

However, if companies have a significant need to use fossil fuel energy for producing their goods and services, increasing carbon tax may not make these companies switch to clean energy for production and may prevent Singapore from achieving its set goals, as many companies and organizations still need to use energy from coal and fossil fuels.

Additionally, carbon tax may cause subsequent economic problems because increasing carbon tax will increase production costs for companies and businesses, which may result in most companies hiring fewer employees and increasing unemployment rates.

Overall, climate change remains a large and difficult problem to solve or achieve progress toward goals. However, what is certain is that climate change can impact other SDGs, particularly economic growth and social inequality from poverty and increased unemployment rates.

Progress of SDG 13 in 2023 for Singapore

Regarding the SDG 13 situation in Singapore as mentioned above, Singapore is still considered to have major challenges remaining, meaning Singapore has not yet achieved its goal of reducing carbon dioxide emissions into the atmosphere. However, the assessment on the website https://dashboards.sdgindex.org/profiles evaluates that Singapore is considered on track or moving in the right direction toward its goal of reducing carbon dioxide emissions.

Importantly, we see Singapore’s efforts to reduce atmospheric carbon dioxide levels without ignoring the issue. Therefore, carbon tax is considered a good first step for addressing climate change problems.

Progress of SDG 13 in 2023 and Approaches to Reducing Carbon Dioxide Emissions in Thailand

Looking back at Thailand, the current situation is considered to have significant challenges remaining but is not as good as it should be. Additionally, Thailand does not yet have clear policies or regulations for reducing carbon dioxide emission problems. Thailand should urgently address this issue. However, Thailand’s rapid implementation of carbon tax following Singapore’s example may impact the country’s economy. A feasible alternative approach would be considering government spending and investment as subsidies to encourage companies to find clean energy or green energy that emits appropriate amounts of carbon dioxide. The government may need to set conditions for spending and investment for these companies, requiring them to use clean energy in producing their goods and services.

Strategy and International Cooperation Coordination Division
National Economic and Social Development Council

Back to News & Articles