Carbon taxation makes poor people poorer

There are good reasons why governments may not want to use carbon taxes, and one of them relates to their welfare impacts. For example, a carbon tax on fossil fuels is often regressive in its impact- hurting poorer people relatively more than richer ones. Even when it might be progressive, poorer people still suffer a welfare loss when prices rise, making their consumption basket more expensive.

blogs.worldbank.org/energy/what-carbon-tax-can-do-and-why-it-cannot-do-it-all