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OECD Report: Effective Carbon Rates 2025 – Recent Trends in Taxes on Energy Use and Carbon Pricing

  • Carbon pricing coverage is expanding but remains uneven: The OECD finds that while more countries are adopting carbon pricing mechanisms, only 45% of emissions in the 72 countries studied are priced, and just 14% face rates aligned with the Paris Agreement’s €60/tonne benchmark.
  • Effective carbon rates vary widely across sectors and countries: The report highlights significant disparities, with electricity and road transport facing higher rates, while industry and agriculture often remain underpriced or exempt, undermining climate policy consistency.
  • Policy recommendations urge broader and stronger carbon pricing: To meet climate goals, the OECD calls for closing coverage gaps, raising carbon prices, and aligning tax and trading systems to ensure fair, efficient, and impactful decarbonization strategies.

You can explore the full report on OECD’s website



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