The government on Monday approved the nation's first carbon tax, which is expected to cover about 80% of local greenhouse gas emissions by 2028.
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The pollution pricing plan to address climate change is slated to take effect in 2023 and slowly increase until 2028, charging companies that emit carbon dioxide into the atmosphere from coal, liquefied petroleum gas, fuel oil, petroleum coke and gas.
A government statement announcing the moves explained that carbon taxation "is intended to correct a market failure, which arises when the polluting factor does not pay for the damage caused as a result of greenhouse gas emissions.
"Carbon pricing is considered the most effective and efficient way to encourage the reduction of greenhouse gas emissions and create certainty in the markets," the statement continued.
Israel has set an ambitious climate target to reduce greenhouse gas emissions by at least 85% by 2050 compared to 2015 levels and an immediate target of a 27% emissions reduction by 2030.
In a recent phone conversation with Environmental Protection Minister Tamar Zandberg, US Special Presidential Envoy for Climate John Kerry praised Israel's climate and renewable energy targets.
This article was first published by i24NEWS
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