Sugar taxation for climate and sustainability goals

Abstract

Meeting environmental sustainability goals while simultaneously recovering from the health and economic crises arising from the coronavirus pandemic requires creative policy solutions. Sugar taxation presents one such policy as sugar crops are arguably the least efficient to consume from a health perspective but the most efficient for biofuel production. Here we analyse the sustainability co-benefits of reducing sugar consumption through redirecting existing sugar cropland to alternative uses. Emissions could fall 20.9–54.3 Mt CO2e yr−1 if the EU were to reduce its sugar consumption in line with health guidelines and the excess Brazilian sugar cane redirected to ethanol. These savings would be around four times higher than an alternative strategy of afforesting existing EU sugar beet cropland and double those from producing sugar beet ethanol in the European Union. Achieving this through policies aimed at behavioural change, with a serious role for sugar taxation, would not only reduce the environmental impacts of biofuels but also provide health and economic benefits.