Sustainable Industrial Production: What is the Carbon Tax?
In pursuit of the ideal of sustainable industrial production, over 40 governments worldwide have agreed to impose a carbon tax. This measure aims to mitigate the harmful effects of climate change and implement actions to reduce CO2 emissions.
The Carbon Tax Worldwide
This measure has proven effective in reducing emissions of harmful gases. For example, in the United Kingdom, a minimum tax of 18 euros per ton of CO? was imposed around 2013. This has resulted in a significant reduction in CO? emissions, reaching their lowest level since 1980.
Another significant achievement was seen in Sweden, where emissions have decreased by 26% since 1990. In Australia, this tax was successfully implemented in 2012. However, due to pressure regarding energy prices, the tax was repealed two years later.
To ensure that this measure yields positive results, careful planning and substantial political support are essential.
The Carbon Tax in Mexico
In Mexico, this measure has also been adopted in some states that aim to take actions to reduce CO2 emissions.
What does it involve?
At the national level, the carbon tax is part of the Special Tax on Production and Services Law (IEPS). It also applies to the importation and commercialization of fossil fuels used in combustion processes, except for natural gas.
The tax rate is determined based on the amount of carbon dioxide contained in fossil fuels and varies by entity, ranging from 43 pesos in the State of Mexico to 530 pesos in Querétaro.
The objective is to encourage companies to use low-carbon technologies and thus achieve the national commitment to reduce greenhouse gas emissions by 30% by 2030.
Which states have implemented it?
In Mexico, there are currently 7 states that have implemented this measure since 2014:
- Baja California
- Estado de México
- Guanajuato
- Querétaro
- Tamaulipas
- Yucatán
- Zacatecas
Additionally, the state of Jalisco has been analyzing the initiative throughout the first quarter of 2023.
What consequences have resulted?
According to information from the report “Carbon Taxes in Mexico: Development and Trends,” conducted by the Mexican Carbon Platform, 9,670 million pesos were collected in the first year of collection. Furthermore, in 2021, a total of 5,674 million pesos was collected.
These resources are allocated to economic, social, and environmental improvement projects, such as constructing industrial parks in Mexico. However, experts like Marco Antonio del Prete, head of the Secretariat of Sustainable Development, consider this tax to be an economic instrument for reducing GHG emissions rather than an environmental tax.
Nevertheless, this tax has also served to establish a price for emissions and incentivize organizations to become more committed to changing consumption patterns. It has helped create efficient production mechanisms and invest in environmentally certified equipment.
Sustainable Production with Advance Real Estate
At Advance Real Estate, we understand the close relationship between sustainability and real estate developments. We recognize the need for sustainable industrial production that is also committed to the national economy.
Based on this conviction, we contribute to industrial parks in Mexico with ESG (Environmental, Social, and Governance) strategies, moving closer to sustainable production.
Information sources
- en15dias.com/mexico/panorama-de-los-impuestos-al-carbono-en-mexico
- advance-realestate.com/adblog/sostenibilidad-y-desarrollos-inmobiliarios-como-se-relacionan
- www2.sat.gob.mx/sitio_internet/…/eps.pdf
- www.worldwildlife.org/descubre-wwf/…/que-es-el-impuesto-al-carbono-y-como-podria-ayudarnos-a-combatir-la-crisis-climatica
- www.eleconomista.com.mx/estados/Solo-ocho-entidades-del-pais-han-implementado-el-impuesto-al-carbono-20221215-0125.html
- www.nytimes.com/es/…/carbono-emisiones-precios.html
