Climate policy

Polluter pays principle

The principle that those responsible for pollution should bear relevant prevention and remediation costs.

Example

It can inform taxes, liability rules and environmental regulation.

The catch

Practical implementation depends on law and how responsibility is established.

Related terms

1.5°C goal, Carbon pricing, Carbon tax, Climate justice, Conference of the Parties, CSRD

In more depth

Polluter pays principle, explained.

The polluter pays principle is written into the EU treaties, and it shapes tools from landfill taxes to producer responsibility schemes that make manufacturers fund the collection of their packaging. Carbon pricing applies it to greenhouse gases by attaching a cost to each tonne emitted. The price of a product then carries some of the damage it causes.

The principle works best when the polluter and the harm can be identified clearly. Diffuse, historical emissions are harder. Debates about loss and damage often invoke it, while the decision adopting the Paris Agreement rules out using its provisions on the subject as a basis for liability or compensation. A low charge can turn the principle into a licence to pollute, so judge it by whether the price reflects the harm.