The EU already implemented Emissions Trading Scheme. EU is putting a cap on the emissions and the allowed emissions are auctioned, so that companies must compet

The EU already implemented Emissions Trading Scheme. EU is putting a cap on the emissions and the allowed emissions are auctioned, so that companies must compete for smaller and smaller pool of allowances. If companies do not reduce emissions there is no limit to how high taxation can go, as the tax rate is market driven with limited supply of allowances. China is planning to implement similar system. Only USA is doing nothing in this regard. https://en.wikipedia.org/wiki/Chinese_national_carbon_trading_scheme https://en.wikipedia.org/wiki/Chinese_national_carbon_tradin... https://en.wikipedia.org/wiki/European_Union_Emission_Trading_Scheme https://en.wikipedia.org/wiki/European_Union_Emission_Tradin...