By putting a price on pollution, taxes and tradable permit systems incentivise emissions abatement at the lowest possible cost. The OECD's work on tax and the environment investigates to what extent countries harness the power of taxes and tradable permit systems for environmental and climate policy. Additional topics of expertise include the interaction between environmental taxation and the broader tax system, and the impacts of environmental taxes on competitiveness and on equity.
Taxing Energy Use - Using Taxes for Climate Action
Taxing Energy Use provides unique information on energy and carbon taxes in OECD and G20 countries. Tax rates and tax base coverage are detailed by country, sector, energy source and tax type. The use of a common methodology ensures full comparability of tax rates and structures across countries. Summary indicators facilitate cross-country comparisons. Well-designed energy tax systems encourage citizens and investors to favour clean over polluting energy sources. Reforming energy tax systems is a key component in the fight against climate change and delivers co-benefits in the form of reduced health damages from local air pollution.
Effective Carbon Rates - Pricing CO2 through Taxes and Emissions Trading Systems
Decarbonisation keeps climate change in check and contributes to cleaner air and water. Countries can price CO2-emissions to decarbonise their economies and steer them along a carbon-neutral growth path. Are countries using this tool to its full potential? This report measures carbon pricing of CO2-emissions from energy use in 42 OECD and G20 countries, covering 80% of world emissions. The analysis takes a comprehensive view of carbon prices, including specific taxes on energy use, carbon taxes and tradable emission permit prices. The ‘carbon pricing gap’ measures how much the 42 countries, together as well as individually, fall short of pricing emissions in line with levels needed for decarbonisation.
OECD at UN Climate Change Conference (COP24) • 2-14 December 2018
The key objective was to adopt the implementation guidelines of the Paris Climate Change Agreement.
The OECD actively contributed to this important event through a series of side events, publications, and by taking part in a number of workshops, seminars and other events throughout the conference.