The OECD’s database of ‘effective carbon rates’ shows that the vast majority of emissions from energy use in OECD and G20 countries are currently priced below the level required to meet internationally agreed targets, or are not priced at all. The database sets out all specific taxes on energy use, including carbon taxes and tradable emissions permits, in a sample of 41 OECD and G20 countries, which together account for 80% of global energy use and associated carbon emissions.
According to these figures, 60% of emissions in the 41 countries are currently not priced, while 78% are priced at less than €10 per tonne of CO2. This compares with the current OECD recommended ‘effective carbon rate’ (ECR), or carbon price, of €30 per tonne. While this rate is being applied to 46% of CO2 emissions in the road transport sector in the 41 countries, the ECR is zero for 70% of emissions outside this sector.
A report by the ‘High-level commission on carbon prices’, a group of economists supported by the World Bank, is even more pessimistic, estimating that carbon prices should range between €40 and €80 per tonne in 2020 to meet targets set in the 2015 Paris climate agreement.
The OECD’s database of ‘effective carbon rates’ shows that the vast majority of emissions from energy use in OECD and G20 countries are currently priced below the level required to meet internationally agreed targets, or are not priced at all. The database sets out all specific taxes on energy use, including carbon taxes and tradable emissions permits, in a sample of 41 OECD and G20 countries, which together account for 80% of global energy use and associated carbon emissions.
According to these figures, 60% of emissions in the 41 countries are currently not priced, while 78% are priced at less than €10 per tonne of CO2. This compares with the current OECD recommended ‘effective carbon rate’ (ECR), or carbon price, of €30 per tonne. While this rate is being applied to 46% of CO2 emissions in the road transport sector in the 41 countries, the ECR is zero for 70% of emissions outside this sector.
A report by the ‘High-level commission on carbon prices’, a group of economists supported by the World Bank, is even more pessimistic, estimating that carbon prices should range between €40 and €80 per tonne in 2020 to meet targets set in the 2015 Paris climate agreement.
