The district heat and hydrogen sector uses the same fuels as the industry sector. When the carbon tax lever was designed, it was assumed the tax was levied upstream on these fuels, and so the rate seen by industrial facilities and district heat/hydrogen facilities would be the same. But some countries consider district heat (at least, maybe also hydrogen supply) to be part of the energy sector and may exempt them from carbon taxes or tax them differently than the industry sector. Change the carbon tax lever so it is set separately for the district heat and hydrogen supply sector, rather than inheriting the industry sector's carbon tax rate.
jrissman
commented
4 years ago
The district heat and hydrogen sector uses the same fuels as the industry sector. When the carbon tax lever was designed, it was assumed the tax was levied upstream on these fuels, and so the rate seen by industrial facilities and district heat/hydrogen facilities would be the same. But some countries consider district heat (at least, maybe also hydrogen supply) to be part of the energy sector and may exempt them from carbon taxes or tax them differently than the industry sector. Change the carbon tax lever so it is set separately for the district heat and hydrogen supply sector, rather than inheriting the industry sector's carbon tax rate.