It seems taxing carbon is becoming a really popular idea as Chile is the latest to consider it as Reuters reported recently. The country would be the first to do so in South America and the second in Latin America after Mexico.
As Climate Progress reports, this tax would concern only utilities and thermal plants of more than 50 MW of capacity. The collected tax would be only $5 – 3.62 euros – a ton of carbon dioxide.
The country is due to have 20 percent of its electricity from renewable sources by 2025. It has great potential for wind, solar and geothermal and it has started tapping into it.