10 Countries with Highest Carbon Tax in the World
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22 August 2024 07:26 WIB
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TEMPO.CO, Jakarta - Governments issue carbon taxes as a type of environmental tax, settling the price per unit based on the emitted carbon. Cited from the World Bank report, carbon pricing is a worldwide recognized instrument that covers the external costs of greenhouse gas, also known as GHG, emissions.
Axel van Trotsenburg, the World Bank Senior Managing Director, stated “Carbon pricing can be one of the most powerful tools to help countries reduce emissions. That’s why it is good to see these instruments expand to new sectors, become more adaptable and complement other measures.”
This article unveils the top 10 countries with the highest carbon tax in the world according to Statista and Insider Monkey.
1. Uruguay
Uruguay tops the list of countries with the highest carbon tax in the world with approximately $167 US dollar per metric ton of CO2. Located in South America, the carbon tax in Uruguay covers a mere 5% of the country’s greenhouse emission. This is a rather low number despite being the first of the list.
2. Liechtenstein
Liechtenstein follows suit in the next place for the countries with highest carbon tax in the world as of 2024. Its carbon tax is priced at $132.12 US dollar per metric ton of CO2 in today’s market. In 2022, Liechtenstein has successfully garnered $5 million revenue from the carbon tax.
3. Switzerland
Switzerland is ranked third with its carbon price costing $130.81 US dollar per metric ton of CO2. Aside from carbon tax, Switzerland has enforced ETS back in 2008. As of 2023, the price for ETS in the country is at $93.81 US dollar.
4. Sweden
Sweden as a part of the Nordic countries has the highest carbon tax in 2024 with the price costing at $127 US dollar per metric ton of CO2. The country’s carbon tax rate has tripled since it was first enforced back in 1991.
5. Norway
Norway is ranked fifth on the list of 10 countries with the highest carbon tax in the world, pricing at the number of $107.8 US dollar per metric of CO2.
6. Finland
Despite its placement on the list, Finland has been in the more advanced area for implementing a carbon tax way back in 1990. The country's carbon tax is priced at $83.74 US dollar for every ton of CO2e. Sectors such as agriculture, transport, and mining are among the areas covered by carbon tax.
7. Netherland
Netherlands is placed seventh on the list of top 10 countries with highest carbon tax despite only being implemented since 2021. The carbon tax in the Netherlands was publicly declared as a “Climate Agreement” with its price reaching $71.48 US dollar per metric ton of CO2e.
8. Ireland
Ireland’s carbon tax price is set at $60.19 US dollar for every ton of CO2e as of 2024, earning the eight place on the list.
9. Canada
In June 2007 the carbon tax in Canada was implemented widely. Today, Canada is ranked 9th on the list of countries with the highest carbon tax in the world with the price $58.94 US dollar per metric ton of CO2e.
10. Luxembourg
Luxembourg’s carbon tax is at the number of $49.9 US dollar, making it on the list. In 2002, the country generated $287 million in revenue for its carbon tax.
The price of carbon tax implemented in each country will have a certain effect on the market.
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