A carbon tax is a financial charge imposed on companies and individuals based on the amount of carbon dioxide they emit into the atmosphere. The goal of this tax is to encourage businesses and consumers to reduce their greenhouse gas emissions, which contribute to climate change. By making fossil fuels more expensive, it incentivizes the use of cleaner energy sources. The revenue generated from a carbon tax can be used to fund renewable energy projects, improve public transportation, or support initiatives aimed at reducing carbon footprints. Many countries and regions have implemented carbon taxes as part of their strategy to meet climate goals and promote sustainable practices.