Mechanisms for Tax Regulation of CO2-Equivalent Emissions

Abstract

The aim of the work is to develop a mechanism for cross-border carbon regulation for countries importing products to the EU, which will equally allow importing countries to fulfill the conditions of the Carbon Border Adjustment Mechanism (CBAM), encourage manufacturers to reduce CO2 emissions, and also provide importing countries with opportunities to replenish their budget by introducing paid emission quotas greenhouse gases. The work makes a significant contribution to stimulating the reduction of CO2 emissions by producers due to the proposed tax mechanism and preventing the leakage of greenhouse gases on the territory of third countries according to the CBAM policy. The EU evaluates double taxation, so if a carbon tax has been withdrawn in the territory of the exporting country, then such a tax will not be levied again in the EU. All this involves stimulating exporting countries by creating their own taxation systems, which will have international qualifications and be recognized by countries around the world. When choosing a taxation mechanism, it is important to choose the specifics for visiting group gases. The study was conducted on the basis of methods of comparison, modeling, analysis and deduction.