Tax policy analysis

Pricing Greenhouse Gas Emissions: Turning Climate Targets into Climate Action


Published 3 November 2022

Accelerating the transition to net zero greenhouse gas (GHG) emissions is urgently required to contain the risks of climate change. As countries seek to reduce GHG emissions, they can employ or reform a wide range of policy instruments. This report tracks how explicit carbon prices, energy taxes and subsidies have evolved between 2018 and 2021. This is an important subset of the policy instruments available to governments. All instruments considered in this report either directly change the cost of emitting GHG or change electricity prices. Reforming these instruments could help to meet climate targets, lead to cleaner air and water, and improve public finances. The report covers 71 countries, which together account for approximately 80% of global GHG emissions and energy use. Explicit carbon prices, as well as energy taxes and subsidies, are detailed by country, sector, product and instrument. The use of a common methodology ensures comparability across countries. Summary indicators facilitate cross-country comparisons and allow policymakers and the public to keep track of progress made and identify opportunities for reform.



Country summaries and data

Argentina | Australia | Austria | Bangladesh | Belgium | Brazil | Burkina Faso | Canada | Chile | China | Colombia | Costa Rica | Côte d'Ivoire | Cyprus | Czech Republic | Denmark | Dominican Republic | Ecuador | Egypt | Estonia | Ethiopia | Finland | France | Germany | Ghana | Greece | Guatemala | Hungary | Iceland | India | Indonesia | Ireland | Israel | Italy | Jamaica | Japan | 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



Data explorer



Carbon Pricing in Times of COVID-19 Cover image Carbon Pricing in Times of COVID-19: What Has Changed in G20 Economies?

There is a growing awareness among countries that a transition to net zero greenhouse gas (GHG) emissions by around the middle of the century is essential for containing the risks of dangerous climate change. Many countries have responded with ambitious emission reduction targets. Now is the time to translate long-term ambitions into concrete policy packages that deliver the necessary transformational change. Carbon pricing is a powerful tool that can help countries meet climate objectives and support a green recovery. This report takes stock of how carbon prices have evolved across G20 economies between 2018 and 2021. It estimates carbon prices resulting from carbon taxes, emissions trading systems, and fuel excise taxes. G20 countries account for approximately 80% of global GHG emissions.
book 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 standard 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.
book Effective Carbon Rates 2021: Pricing Carbon Emissions through Taxes and Emissions Trading

Carbon pricing effectively encourages the shift of production and consumption choices towards low and zero-carbon options 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 changes compared to 2012 and 2015. It also provides an outlook on recent trends in emissions trading in China and the European Union.


OECD COP27 Virtual Pavilion: What role for carbon prices as energy market turbulence continues?

10 November 2022 | 14:00-15:00 CET

The #OECDatCOP27 virtual pavilion will gather leading experts to discuss solutions to accelerate climate action and reach the goals of the Paris Agreement. Join us to engage in discussions on how to advance carbon pricing and greenhouse gas mitigation efforts for climate action.


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