- 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
