In this essay, we argue that to design green taxes which are high enough to have the desired incentive effects, tax revenues must be reimbursed, either by earmarking them for environmental subsidies or by reducing other taxes directed at industry. This would decrease industrial opposition to green taxation. However, in practice, the requirement of reimbursement may be difficult to fulfil because most polluting industries are not homogeneous. This means that reimbursement will redistribute financial resources within industry, creating winners and losers. We demonstrate how green taxation can be used by operating separate tax schemes for each branch of industry.