One way of addressing climate change is to tax greenhouse gas emissions. This animation shows how taxes have progressively been rolled out globally. While we only display the carbon tax rates in more recent years, carbon tax regimes started in the early 1990s in some European markets, including Finland, Poland, Norway, Sweden, Slovenia and Denmark.
Since 2000, as more jurisdictions have introduced a carbon tax worldwide, we have also seen more significant dispersion in tax rates. Sweden, Liechtenstein, and Switzerland have had the highest carbon tax rate during the last five years, with prices ranging from seven to ten times the world’s average carbon tax rate.
Data source: Realcarbonindex.org (Note: The weighted average is based on the scope of emissions covered under each tax regime. Prices were on the last day of each year, except for 2021, for which prices were on 20th Aug 2021)