Environment

Carbon dioxide taxes on car fuel were reduced between 2021-2023

Paris, Nov 27 (EFE).- Taxes on greenhouse gas emissions from motor fuels, with the exception of Latin American countries such as Chile, Argentina, and Mexico, have been reduced between 2021 and 2023 through measures to mitigate the effects of inflation and the escalation of hydrocarbon prices.

The Organisation for Economic Co-operation and Development’s report analyzing greenhouse gas emissions taxation in 72 countries, which collectively represent about 80% of the world’s total, draws this as its primary conclusion.

Most of these governments tried to minimize the impact of the rise in fossil fuel prices, mainly due to the Russo-Ukrainian conflict.

The tax rate on carbon dioxide, be it through a fuel tax, carbon tax, or emission permit pricing, saw a decrease, reaching up to 55% in Turkey and 48% in India.

These tax reductions were also very significant between the two years in rich countries such as the United Kingdom, 18%; Australia, 13%; Italy, 12%; Germany, 11%; the United States, 10%; Spain, 10%, and France, 6%.

However, the opposite happened in Chile, with an increase of 60% between 2021 and 2023; Indonesia, 38%; Argentina, 28%; Mexico, 12%; Colombia, 6%; Canada, 5%, and Costa Rica, 2%.

Beyond these developments in vehicle fuels, which go against the grain of fossil fuel phase-out advocated to curb global warming, the OECD sees progress in carbon pricing.

On the one hand, the share of carbon dioxide covered by emissions trading schemes was more than double between 2018 and 2021, from 13% to 27%.

More broadly, about 58% of the 40 billion tonnes of greenhouse gas emissions emitted in the 72 countries studied were not priced, down from 70% in 2018.

About 16% of these emissions were taxed at more than $32 per tonne, half of what is considered the international benchmark.

Only 7% of the total had a tax rate of $65 or more and around 4% paid at least 120 euros ($131.35).

In Spain, the percentage of emissions with a price of at least $65 was 41%. In total, 91% had a carbon fee.EFE

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