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.
Published on May 05, 2021