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Carbon taxes and markets around the world

Foreword

The global rise in energy prices has not stopped the global momentum of carbon pricing. This is what you will discover when you read the 2022 edition of the World Carbon Accounts published by I4CE. Several states or provinces have recently introduced carbon taxes or markets, such as Austria and Uruguay. There is a total of 68 of such taxes worldwide. But taking into account the various exemptions that these schemes allow, only 20% of global carbon emissions are currently covered by carbon prices, which are more or less high and on the whole rather low.

This means that 80% of global emissions are not covered by a price signal and that public decision-makers must mobilise the other levers at their disposal to drive the transition, such as regulation or public investment. In order to make these investments, they can count on revenues from taxes and carbon markets. At the global level, these have almost reached USD 100 billion between March 2021 and March 2022. This 80% increase is due in particular to the sharp rise in prices on the European carbon market (EU ETS).

However, we should not lose sight of the fact that much more than USD 100 billion per year will be needed to limit global warming. Especially if we continue to undo with one hand what we do with the other: fossil fuel subsidies remain massive and are increasing as measures are taken around the world to protect households and businesses from rising energy prices. Measures that are necessary in the face of urgency, but which fail to be targeted at those who really need them and which - while supposed to be transitory - seem set to last.

#I4CE_Report

Global carbon acounts in 2022
68 carbon taxes or markets around the world, prices ranging from 1 cent to 134 USD/tCO2eq, revenues now approaching 100 billion USD... These are some of the key figures you will discover when reading the new edition of I4CE's Global Carbon Accounts, which reviews all the carbon taxes and markets set up by states or provinces. I4CE also explores what is done with the revenues from these carbon pricing schemes, between supporting environmental priorities and allocating them to general budgets.

#FromThePast

Using carbon revenues

The rise in carbon revenues raises the question of how they are used. I4CE invites you to re-read this report published with the World Bank and AFD, which explores what countries are doing with their carbon revenues. The report is also a practical guide for policy makers who want to combine climate ambition with a wide range of economic and social objectives, and communicate effectively on the benefits of such policies.

The Good, the Bad and the Unclear: Environmental Budget Tagging

More and more countries around the world are evaluating their budgets - both taxation and expenditure - in terms of their environmental impact. This study takes stock of these Environmental Budget taggings and identifies the expected benefits and the conditions to achieve them : take into account the measures that are unfavorable to the environment, consider the outcomes of assessed measures and not only their intention, repeat the exercise over time and fit it into the existing administrative culture and processes.

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