WORLD EXPERIENCE OF CARBON TAXATION AND ITS IMPLEMENTATION INTO DOMESTIC PRACTICE

Abstract

Purpose. The aim of the article is to study the global experience of taxation of carbon emissions and the expediency and possibility of its implementation into domestic practice. Methodology of research. The combination of both general scientific and specific research methods (in particular, methods of description and comparison, monographic, generalization, etc.) made it possible to substantiate the reasons for the insufficient effectiveness of the mechanism of taxation of carbon emissions and to modify it according to a stimulating approach. Findings. It is substantiated that the mechanism of taxation of carbon emissions currently operating in Ukraine is insufficiently effective and does not ensure the performance of the main function – the reduction of carbon emissions, which inhibits the fulfilment by Ukraine of its obligations regarding the reduction of greenhouse gas emissions determined in accordance with the Second Nationally Determined Contribution to the Paris Climate Agreement. Emphasis is placed on the urgent need to reform carbon taxation in order to create an effective mechanism that, without drastic interventions in the activities of economic agents, will ensure the effective influence of the state on their behaviour and the achievement of ambitious climate goals regarding the reduction of CO2 emissions, provided for by the Second Nationally Determined Contribution to the Paris Climate Agreement and the Low-Carbon Development Strategy of Ukraine until 2050. Originality. The mechanism of taxation of carbon emissions was modified, which, unlike the existing one, is based on an incentive approach that will stimulate economic agents to change consumer and production behaviour. Practical value. Implementation of the modified carbon emissions taxation mechanism in practice will contribute to the reduction of carbon emissions and Ukraine’s fulfilment of its obligations provided for by the Second Nationally Determined Contribution to the Paris Climate Agreement. Key words: mechanism of carbon taxation, tax on carbon emissions, tax rate, the system of monitoring and verification of carbon emissions, tax administration.