Tax policy analysis
Effective Carbon Rates 2023
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Published 27 November 2023 Successfully transitioning to net-zero greenhouse gas (GHG) emissions requires effective mitigation policy packages, which include carbon pricing measures: a cost-effective policy instrument that not only reduces emissions but also generates revenue to support the transition. This fourth edition of Effective Carbon Rates provides an overview of the carbon pricing landscape, examining fuel excise taxes, carbon taxes, and emissions trading systems (ETSs) through 2021, with updates on developments until 2023. The policy mechanisms examined directly impact the cost of emitting GHGs, influencing shifts in production, consumption, and investment towards low- or zero-carbon options. The analysis covers 72 countries which together account for approximately 80% of global GHG emissions. The report focuses on developments in ETSs and transport fuel taxes amidst the energy crisis and provides comprehensive and comparable data on the current status of GHG emissions pricing that can assist policymakers in identifying priorities and refining carbon mitigation strategies. |
Highlights
- Download the brochure (Également disponible en français)
- Read the executive summary (Également disponible en français)
- Read the press release: Fuel taxes less resilient than emission permit prices amid high inflation (Également disponible en français)
Watch the launch event!
OECD COP28 Virtual Pavilion: Resilience and reform in carbon pricing: Adapting to new realities
27 November 2023 | 16:30-18:00 CET
The #OECDatCOP28 virtual pavilion brings together leading experts to discuss new realities in the carbon pricing landscape with the emergence of border carbon adjustment measures and large-scale government support for low-carbon technologies. The session explored the implications of these new developments on climate change mitigation efforts, particularly on carbon pricing as a policy tool.
- Watch the replay (registration required)
Data
Effective Carbon Rates measures carbon pricing of greenhouse gas emissions in 72 countries, covering 80% of world emissions. This companion dataset provides a comprehensive view on carbon pricing, including fuel excise taxes, carbon taxes and tradable emission permit prices.
- Access the dataset (OECD.Stat)
Argentina | Australia | Austria | Bangladesh | Belgium | Brazil | Burkina Faso | Canada | Chile | China | Colombia | Costa Rica | Côte d'Ivoire | Cyprus | Czechia | Denmark | Dominican Republic | Ecuador | Egypt | Estonia | Ethiopia | Finland | France | Germany | Ghana | Greece | Guatemala | Hungary | Iceland | India | Indonesia | Ireland | Israel | Italy | Jamaica | Japan | Kazakhstan | Kenya | Korea | Kyrgyzstan | Latvia | Lithuania | Luxembourg | Madagascar | Malaysia | Mexico | Morocco | Netherlands | New Zealand | Nigeria | Norway | Panama | Paraguay | Peru | Philippines | Poland | Portugal | Rwanda | Slovak Republic | Slovenia | South Africa | Spain | Sri Lanka | Sweden | Switzerland | Türkiye | Uganda | Ukraine | United Kingdom | United States | Uruguay
Interpreting the figures in the country summaries (PDF)
Key figures
- Free allocation shares vary widely across countries with ETSs
- Emissions trading systems mainly cover electricity and industry sector emissions
Related reading
- Pricing Greenhouse Gas Emissions: Turning Climate Targets into Climate Action (OECD 2022)
- Carbon Pricing in Times of COVID-19: What Has Changed in G20 Economies? (OECD 2021)
- Taxing Energy Use for Sustainable Development: Opportunities for energy tax and subsidy reform in selected developing and emerging economies (OECD 2021)
further information
- Discover more about OECD work on environmental taxation
- Contact us: ctp.contact@oecd.org
- Follow us on social media: @OECDtax (X/Twitter) & OECD Tax (LinkedIn)
The OECD is grateful to the Kingdom of Belgium Federal Public Service, Foreign Affairs, Foreign Trade and Development Cooperation for a voluntary contribution that has supported this work.
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