There have been extreme oppositions to the carbon tax policy, which has been imposed by the Australian government for reducing carbon emission targets in Australia. Experts claim if Australia had not initiated the plan now it would lag behind, in the global trends of emission reduction schemes. New technology development projects for the promotion of emission reduction and green methodologies are now being researched across the globe more seriously as compared to some years back because now the countries are facing the problems which are caused by global warming.

Australia faced the problem of changing weather patterns due to global warming and the per capita emission of Australia is one of the highest in the world. The implementation of a carbon tax for generating excess emissions has been considered effective step by many environmentalists and leaders who believe this way Australia will achieve growth in an environmentally friendly manner and it will also be able to promote the development of technology to get low cost alternative of fossil fuels.

The benefits figured out by experts of carbon taxes are –

1.Carbon tax provides the capital which is required for development of technology which can promote the use of renewable sources of energy. Carbon tax implementation forces companies to develop methodologies to reduce emissions.

2.Carbon tax spreads the word tax for everything which is associated with the use of non-renewable source of energy. It alerts people about the products or services which are not environmentally friendly.

3.It is considered economically effective as compared to other methods of emission reduction. The method promotes the generation of capital for reducing the use of fossil fuels.

4.Carbon tax also initiates the process of innovation in green technologies. The industries are now interested in developing mechanisms, which allows nature friendly productions.

5.The reduction of emissions in the environmental has a direct impact on the health of every individual living on the earth. People can breathe fresh air which is not as polluted as it used to be due to the emissions of harmful gases into the environment.

6.It provides companies to develop corporate social responsibility and be responsible towards the society. The industries will have to pay for working on non-environmental friendly methods.

7.The methodology is better than cap-and-trade mechanism, where the industries are given the emission permissions and they can emit as much they can.

Carbon credit investment in carbon sequestration projects is increasing in Australia where the investors can earn carbon credits by buying plot in carbon credit projects or investing in carbon farming initiatives. Farmers are benefiting from the introduction of carbon tax as the farmers who are successfully working on Carbon Farming Projects, can earn by selling the carbon credits earned from these projects to the government. The carbon farming projects which are related to land management and forestry are fully monitored by the government and the investors can earn up to $ 23 for a tonne of carbon credits. These carbon credits can also be sold in the voluntary carbon markets.