Sustainability

Carbon tax

A carbon tax is a government-imposed fee on the carbon content of fossil fuels or on CO₂ emissions generated by certain activities. This could apply to fuel producers, energy companies, industrial manufacturers, or large transport operators, depending on how the national or regional tax is structured. The more a company emits, the more it pays.

Why do governments implement carbon taxes?

Governments use carbon taxes to encourage companies to:

  • Reduce greenhouse gas emissions in line with climate goals
  • Make polluting activities more expensive and clean technologies more attractive
  • Create funds that can be reinvested in climate programs or offset social costs

What is the difference between a carbon tax and carbon credits?

A carbon tax is a government-mandated cost applied directly to emissions. Companies pay the tax whether or not they reduce their emissions. Carbon credits are market-based tools that allow companies to voluntarily (or sometimes mandatorily) compensate for emissions by supporting climate projects.

Explore other terms like

Carbon tax

Transport/Logistics

Logistics service provider (LSP)

A logistics service provider (LSP) is a company that provides logistics services that enable the transport, storage, or handling of goods. There are different types of LSPs, ranging from LSPs that manage a single activity (e.g. transporting goods from warehouse to retailers) to full-service LSPs that manage the entire logistics process for their clients (also called 4PL).

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Transport/Logistics

Route optimization

Route optimization is the process of planning the most efficient and cost-effective routes for transporting goods. It takes into account variables like distance, traffic, time windows, fuel usage, vehicle capacity, and customer locations to reduce mileage, delivery times, and emissions.

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Transport/Logistics

Carbon intensity

Carbon intensity refers to the amount of carbon dioxide equivalent (CO₂e) emissions produced per unit of activity e.g. per tonne of freight transported, per kilometre travelled, or per euro of revenue generated. It is used to compare the environmental impact of different operations, routes, or transport modes.

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