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 2019: 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 2021: Pricing Carbon Emissions through Taxes and Emissions Trading
Carbon pricing very effectively encourages the shift of production and consumption choices towards low and zero carbon options that is required to limit climate change. Are countries using this tool to its full potential? This report measures the pricing of CO2-emissions from energy use in 44 OECD and G20 countries, covering around 80% of world emissions. The analysis takes a comprehensive view of carbon prices, including fuel excise taxes, carbon taxes and tradable emission permit prices. The "carbon pricing score" measures how close the 44 countries, together as well as individually, are to the goal of pricing all energy related carbon emissions at current and forward-looking benchmark values for carbon costs. The report highlights the structure of effective carbon rates across countries and sectors in 2018 and discusses change compared to 2012 and 2015. It also provides an outlook on recent trends in emissions trading in China and the European Union.
OECD COP26 Virtual Pavilion: No time to rest – Stepping up carbon pricing efforts to meet climate goals
3 November 2021 | 16:00-17:00 CET | COP26 Goal: Mitigation
With nearly 30 events, the #OECDatCOP26 virtual pavilion gathered leading experts to discuss solutions to accelerate climate action and reach the goals of the Paris Agreement. This event discussed the role of carbon pricing in driving greenhouse gas reductions and highlight the latest carbon pricing progress in G20 countries – which together account for over 80% of energy emissions. Join us to engage in discussions on how to advance carbon pricing and greenhouse gas mitigation efforts for climate action.