A report from the Organization of Economic Cooperation and Development predicts, close to half of green house gas emissions from seventy nine countries, will soon be under carbon taxing schemes.
The report, presented on Thursday at the OECD’s COP29 Virtual Pavilion, predicts fifteen new carbon tax pricing schemes will rise from twenty seven to thirty four percent over the next five years.
OECD Secretary General, Mathias Cormann said they see governments preparing for more ambitious climate action.
The report measures carbon prices using the Net Effective Carbon Rates indicator, which is the sum of four components: specific taxes on fossil fuels, carbon taxes, prices of tradeable emission permits, less subsidies on fossil fuels. All four components change the price signal for carbon emissions.
The report also measures energy rates through the Net Effective Energy rate that additionally includes electricity taxes and subsidies that apply to energy use.