Abstract: The carbon tax legislation is enacted in many countries to put pressures on companies to reduce their carbon emissions across their Supply chains (SC) and promote the green technology investment. The majority of countries, when applying such a legislation, adopt a progressive tax strategy. They launch the carbon tax with a relatively low carbon price and plan to increase it incrementally over the years in a way to attend their emission reduction objective. In our work, we aim to study the effect of such a carbon tax strategy on the strategic decisions of a SC. We consider a technology selection problem for a company facing a carbon tax legislation through a progressive and communicated strategy. We believe that due to changing social, economic and political circumstances, the carbon price is subject to uncertainty. Eventual alterations on the announced strategy may occur to adapt the carbon prices to changes and SC’s environment evolution. In our model, more than one scenario of the carbon tax implementation is considered. We contribute to the literature by developing a dynamic stochastic model of technology selection under a dynamic and uncertain carbon tax legislation using the scenario approach modeling technique. We solve this model through a numerical example derived from the textile industry and we assess the impact of the progressive carbon taxation strategy on strategic decisions of the company and its economic and environmental performances.