Climate Change and Tax Policy in Terms of Climate Justice

Funding for climate action is an urgent priority for achieving the Sustainable Development Goals (SDGs), not only in low- and middle-income countries, which are particularly vulnerable to climate risks, but also in high-income countries, especially those that are dependent on fossil fuels. The aim of this article is to outline the essence of environmental taxation from the point of view of climate justice, providing an indication of the changes in tax policy that are necessary to combat climate change and facilitate the transition to a green economy. Climate disasters resulting from climate change not only cause economic and social destruction but can also push the global economy toward a lower-growth path. In view of the above, the research questions are formulated as follows: (1) Who benefits from climate change, and who suffers as a result? (2) How can Rawls’s redistributive justice and climate justice be reconciled within the tax system? (3) What specific changes to the tax system are needed? The survey conducted confirms that tax policy can play an essential role in the fight against climate change only if it is compatible with climate justice. Tax burdens should be fairer given that the richest account for the dominant share of global carbon dioxide emissions, while the poorest are the most exposed to climate hazards.