Carbon Taxes in Europe

• Several countries have implemented measures to reduce carbon emissions, including environmental regulations, emissions trading systems (ETSs), and carbon taxes.
• Finland was the first country to introduce a carbon tax in 1990, and since then, 18 European countries have implemented carbon taxes.
• The rates of these taxes vary, with Sweden, Liechtenstein, and Switzerland having the highest rates.
• Carbon taxes can be levied on different greenhouse gases, and the scope of each country’s tax varies.
• All EU member states, along with Iceland, Liechtenstein, and Norway, are part of the EU Emissions Trading System.
• Some countries have overlapping national carbon taxes and ETSs, leading to double taxation. Some countries also apply multiple taxes or ETSs at different rates.
• Catalonia is considering implementing a subnational carbon tax.

Source Tax Foundation

 

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