Editing Carbon tax (section)

== Implementation==
[[File:Map of carbon taxes and emissions trading systems worldwide (2021).png|alt=Carbon taxes and emission trading worldwide|thumb|upright=1.35|Emissions trading and carbon taxes around the world (as of 2021)<ref>{{Citation |title=State and Trends of Carbon Pricing 2021 |date=2021-05-25 |url=https://openknowledge.worldbank.org/handle/10986/35620 |access-date=2021-07-07 |archive-url=https://web.archive.org/web/20210716135844/https://openknowledge.worldbank.org/handle/10986/35620 |url-status=live |publisher=[[World Bank]] |doi=10.1596/978-1-4648-1728-1 |isbn=978-1-4648-1728-1 |language=en |archive-date=16 July 2021}}</ref>{{Legend|#d66f51|Carbon tax implemented or scheduled}}{{Legend|#aab68f|Carbon [[emission trading]] implemented or scheduled}}
{{Legend|#ffb001|Carbon [[emission trading]] or carbon tax under consideration}}]]

Both energy and carbon taxes have been implemented in response to commitments under the [[United Nations Framework Convention on Climate Change]].<ref name="bashmakov" /> In most cases the tax is implemented in combination with exemptions. Indirect carbon prices, such as fuel taxes, are much more common than carbon taxes''.'' In 2021, OECD reported that 67 of the 71 countries it assessed had some form of fuel tax. Only 39 had carbon taxes or ETSs. However, the use of carbon taxes is growing more quickly. In addition, several countries plan to further strengthen existing carbon taxes in the coming years, including Singapore, Canada and South Africa.<ref name="worldbank">{{Cite book |last=World Bank |url=https://openknowledge.worldbank.org/handle/10986/39796 |title=State and Trends of Carbon Pricing 2023 |date=May 2023 |isbn=978-1-4648-2006-9 |at=Pages 17-18 |language=en-US}}</ref>

Current carbon price policies, including carbon taxes, are still considered insufficient to create the kinds of changes in emissions that would be consistent with Paris Agreement goals. The International Monetary Fund, OECD, and others have stated that current fossil fuel prices generally fail to reflect environmental impacts.<ref name="worldbank" />

=== Europe ===
{{Update|inaccurate=yes|section|date=May 2019}}
{{Further|Climate change in Europe}}
In Europe, many countries have imposed energy taxes or energy taxes based partly on carbon content.<ref name="bashmakov" /> These include Denmark, Finland, Germany, Ireland, Italy, the Netherlands, Norway, Slovenia, Sweden, Switzerland, and the UK. None of these countries have been able to introduce a uniform carbon tax for fuels in all sectors.<ref>{{cite journal |last=Andersen |first=Prof. Mikael Skou |year=2010 |title=Europe's experience with carbon-energy taxation |url=http://sapiens.revues.org/1072 |url-status=live |journal=Sapiens |volume=3 |issue=2 |archive-url=https://web.archive.org/web/20110826171437/http://sapiens.revues.org/1072 |archive-date=26 August 2011 |access-date=24 August 2011}} ''See.'' Burgers, Irene J., and Stefan E. Weishaar. ''Designing Carbon taxes is not an easy task: legal perspectives.'' No. 559. WIFO Working Papers, 2018.</ref> Denmark is the first country to include [[Greenhouse gas emissions from agriculture#Livestock|livestock emissions]] in their carbon tax system.<ref>{{cite news |url=https://www.devex.com/news/what-the-world-can-learn-from-denmark-s-carbon-tax-on-agriculture-107908 |title=What the world can learn from Denmark's carbon tax on agriculture |author=Tais Gadea Lara |work=Devex |date=9 July 2024 |access-date=27 July 2024}}</ref>

During the 1990s, a carbon/energy tax was proposed at the EU level but failed due to industrial lobbying.<ref name="pearce">{{cite web |author=Pearce, D. |year=2005 |title=The United Kingdom Climate Change Levy: A study in political economy |url=http://www.olis.oecd.org/olis/2004doc.nsf/LinkTo/NT00009492/$FILE/JT00179396.PDF |url-status=live |archive-url=https://web.archive.org/web/20110501072327/http://www.olis.oecd.org/olis/2004doc.nsf/LinkTo/NT00009492/$FILE/JT00179396.PDF |archive-date=1 May 2011 |access-date=30 August 2009 |publisher=OECD Environment Directorate, [[Centre for Tax Policy and Administration]]}}</ref> In 2010, the European Commission considered implementing a pan-European minimum tax on pollution permits purchased under the [[European Union Greenhouse Gas Emissions Trading Scheme]] (EU ETS) in which the proposed new tax would be calculated in terms of carbon content.<ref>{{cite news |last=Kanter |first=James |date=22 June 2010 |title=Europe Considers New Taxes to Promote 'Clean' Energy |work=The New York Times |url=https://www.nytimes.com/2010/06/23/business/energy-environment/23carbon.html?ref=cap_and_trade |url-status=live |access-date=21 February 2017 |archive-url=https://web.archive.org/web/20190301124920/https://www.nytimes.com/2010/06/23/business/energy-environment/23carbon.html?ref=cap_and_trade |archive-date=1 March 2019}}</ref> The suggested rate of €4 to €30 per tonne of {{CO2}}.<ref>{{cite news |last=Kanter |first=James |date=22 June 2010 |title=Europe Considers New Taxes to Promote 'Clean' Energy |work=The New York Times |url=https://www.nytimes.com/2010/06/23/business/energy-environment/23carbon.html?_r=2&ref=cap_and_trade |url-status=live |access-date=21 February 2017 |archive-url=https://web.archive.org/web/20190301144220/https://www.nytimes.com/2010/06/23/business/energy-environment/23carbon.html?_r=2&ref=cap_and_trade |archive-date=1 March 2019}}</ref>

=== Americas ===

==== Costa Rica ====
In 1997, [[Costa Rica]] imposed a 3.5 percent carbon tax on hydrocarbon fuels.<ref>{{cite web |last=Meyer |first=Peter |year=2010 |title=United States. Costa Rica: Background and U.S. Relations |url=http://assets.opencrs.com/rpts/R40593_20100222.pdf |url-status=dead |archive-url=https://web.archive.org/web/20110807121815/http://assets.opencrs.com/rpts/R40593_20100222.pdf |archive-date=7 August 2011}}</ref> A portion of the proceeds go to the "Payment for Environmental Services" (PSA) program which gives incentives to property owners to practice sustainable development and forest conservation.<ref>{{citation |title=Costa Rica: Experts warn about the dangers of missing environmental targets |date=8 October 2009 |type=PDF }}</ref> Approximately 11% of Costa Rica's national territory is protected by the plan.<ref>{{cite web |title=Costa Rica: Background and U.S. Relations |url=http://assets.opencrs.com/rpts/R40593_20100222.pdf |url-status=dead |archive-url=https://web.archive.org/web/20110807121815/http://assets.opencrs.com/rpts/R40593_20100222.pdf |archive-date=7 August 2011 |access-date=4 August 2010}}</ref> The program now pays out roughly $15&nbsp;million a year to around 8,000 property owners.<ref>{{cite news |date=24 May 2007 |title=Costa Rica aims to win "carbon neutral" race |work=Reuters |url=https://www.reuters.com/article/idUSN2438974220070526 |url-status=live |access-date=30 June 2017 |archive-url=https://web.archive.org/web/20211120191531/https://www.reuters.com/article/idUSN2438974220070526 |archive-date=20 November 2021}}</ref>

==== Canada ====
{{main|Carbon pricing in Canada|Quebec carbon tax|British Columbia Carbon Tax}}

In the [[Canadian federal election, 2008|2008 Canadian federal election]], a carbon tax proposed by [[Liberal Party of Canada|Liberal Party]] leader [[Stéphane Dion]], known as the Green Shift, became a central issue. It would have been revenue-neutral, balancing increased taxation on carbon with rebates. However, it proved to be unpopular and contributed to the Liberal Party's defeat, earning the lowest vote share since [[1867 Canadian federal election|Confederation]].<ref>{{cite news |last=Bryden |first=Joan |title=Liberals cast themselves in leader's light |url=http://www.thestar.com/news/canada/article/520836 |date=20 October 2008 |work=Toronto Star |archive-url=https://web.archive.org/web/20121013063631/http://www.thestar.com/news/canada/article/520836 |archive-date=13 October 2012 }}</ref><ref>{{cite web |last=Bilton |first=Chris |title=Green shifting right? |url=http://www.eyeweekly.com/blog/post/49116 |work=[[Eye Weekly]] |date=7 January 2009 |archive-url=https://web.archive.org/web/20110501072424/http://www.eyeweekly.com/blog/post/49116 |archive-date=1 May 2011 }}</ref><ref>{{cite news |last=Reid |first=Scott |title=The good, the (mostly) bad, and the faint signs of hope |url=http://www.theglobeandmail.com/servlet/story/RTGAM.20081224.WStrategists1225/BNStory/politics |work=The Globe and Mail |url-status=dead |date=26 December 2009 |archive-url=https://web.archive.org/web/20090308030122/http://www.theglobeandmail.com/servlet/story/RTGAM.20081224.WStrategists1225/BNStory/politics |archive-date=8 March 2009 }}</ref><ref>[[Martha Hall Findlay|Findlay, Martha Hall]]. [https://www.theglobeandmail.com/servlet/story/RTGAM.20090119.WFindlay19/BNStory/politics/home After the Green Shift] {{Webarchive|url=https://web.archive.org/web/20090227052540/http://www.theglobeandmail.com/servlet/story/RTGAM.20090119.WFindlay19/BNStory/politics/home|date=27 February 2009}}. ''The Globe and Mail''. 19 January 2009.</ref> The Conservative party won the election by promising to "develop and implement a North American-wide [[cap-and-trade]] system for greenhouse gases and air pollution, with implementation to occur between 2012 and 2015".<ref>{{cite news |title=Case of the Conservatives' carbon amnesia |work=[[The Globe and Mail]] |url=https://www.theglobeandmail.com/opinion/case-of-the-conservatives-carbon-amnesia/article4557581/ |url-status=live |access-date=22 August 2017 |archive-url=https://web.archive.org/web/20170210073222/https://www.theglobeandmail.com/opinion/case-of-the-conservatives-carbon-amnesia/article4557581/ |archive-date=10 February 2017}}</ref>

In 2018, Canada enacted a revenue-neutral carbon levy starting in 2019,<ref>[https://www.canlii.org/en/ca/laws/stat/sc-2018-c-12-s-186/139160/sc-2018-c-12-s-186.html Greenhouse Gas Pollution Pricing Act] {{Webarchive|url=https://web.archive.org/web/20190105082330/https://www.canlii.org/en/ca/laws/stat/sc-2018-c-12-s-186/139160/sc-2018-c-12-s-186.html|date=5 January 2019}}, in force since 21 June 2018 (page visited on 26 October 2018).</ref><ref name="Nuccitelli">{{cite news |first=Dana |last=Nuccitelli |url=https://www.theguardian.com/environment/climate-consensus-97-per-cent/2018/oct/26/canada-passed-a-carbon-tax-that-will-give-most-canadians-more-money |title=Canada passed a carbon tax that will give most Canadians more money |url-status=live |archive-url=https://web.archive.org/web/20181129002759/https://www.theguardian.com/environment/climate-consensus-97-per-cent/2018/oct/26/canada-passed-a-carbon-tax-that-will-give-most-canadians-more-money |archive-date=29 November 2018 |work=[[The Guardian]] |date=26 October 2018 |access-date=26 October 2018 }}</ref> fulfilling Prime Minister [[Justin Trudeau]]'s campaign pledge.<ref name="Nuccitelli" /> The [[Greenhouse Gas Pollution Pricing Act]] applies only to [[Provinces and territories of Canada|provinces]] without provincial adequate carbon pricing.<ref name="Nuccitelli" /> As of September 2020, seven of thirteen Canadian provinces and territories use the federal carbon tax while three have developed their own carbon tax programs.<ref>{{Cite web |date=2020-09-24 |title=Carbon Pricing in Canada (Updated 2020) |url=https://www.energyhub.org/carbon-pricing/ |url-status=live |archive-url=https://web.archive.org/web/20201029042654/https://www.energyhub.org/carbon-pricing/ |archive-date=29 October 2020 |access-date=2020-09-27 |website=energyhub.org |language=en-US}}</ref> In December 2020, the federal government released an updated plan with a {{CA$|15}} per tonne per year increase in the carbon pricing, reaching {{CA$|95}} per tonne in 2025 and {{CA$|170}} per tonne in 2030.<ref>{{Cite web |title=A HEALTHY ENVIRONMENT AND A HEALTHY ECONOMY |url=https://www.canada.ca/content/dam/eccc/documents/pdf/climate-change/climate-plan/healthy_environment_healthy_economy_plan.pdf |url-status=live |archive-url=https://web.archive.org/web/20210810212042/https://www.canada.ca/content/dam/eccc/documents/pdf/climate-change/climate-plan/healthy_environment_healthy_economy_plan.pdf |archive-date=10 August 2021 |access-date=8 August 2021}}</ref> [[Quebec]] became the first province to introduce a carbon tax.<ref name="Quebec to collect nation's 1st carbon tax">{{cite web |title=Quebec to collect nation's 1st carbon tax |work=cbc.ca |url=https://www.cbc.ca/news/canada/montreal/quebec-to-collect-nation-s-1st-carbon-tax-1.684888 |url-status=live |archive-url=https://web.archive.org/web/20200930185612/https://www.cbc.ca/news/canada/montreal/story/2007/06/07/carbon-tax.html |archive-date=30 September 2020 |access-date=16 March 2020}}</ref><ref name="Quebec government to implement carbon tax">{{cite web |title=Quebec Government to Implement Carbon Tax |url=http://www.torys.com/Publications/Documents/Publication%20PDFs/CCB2007-6.pdf |url-status=dead |archive-url=https://web.archive.org/web/20140812123242/http://www.torys.com/Publications/Documents/Publication%20PDFs/CCB2007-6.pdf |archive-date=12 August 2014}}</ref> The tax was to be imposed on energy producers starting 1 October 2007, with revenue collected used for energy-efficiency programs. The tax rate for gasoline is $CDN0.008 per liter, or about {{CA$|3.50}} per tonne of {{chem|CO|2}} equivalent.<ref name="Where Carbon is Taxed">{{Cite web |title=Where Carbon Is Taxed |url=https://www.carbontax.org/where-carbon-is-taxed/ |url-status=live |archive-url=https://web.archive.org/web/20170223212007/https://www.carbontax.org/where-carbon-is-taxed/ |archive-date=23 February 2017 |access-date=22 February 2017 |website=www.carbontax.org}}</ref>

The Liberal government claimed 80% of Canadians were receiving more money back via a carbon rebate but the tax was unpopular with many Canadians and became a political issue.<ref>{{Cite web |url=https://www.canada.ca/en/department-finance/news/2024/02/canada-carbon-rebate-amounts-for-2024-25.html |title=Canada Carbon Rebate amounts for 2024-25 |first=Department of Finance |last=Canada |date=14 February 2024 |website=www.canada.ca}}</ref><ref>{{Cite web|url=https://nationalpost.com/news/canada/pbo-carbon-tax-canadians-worse-off-rebates|title=Canadians get more in rebates than they pay in carbon taxes says PBO &#124; National Post}}</ref> In 2023, the [[Official Opposition (Canada)|Official Opposition]] refused to support a free trade bill between Canada and the Ukraine that added a new environmental chapter to "promote carbon pricing". Liberal Trade Minister [[Mary Ng]] stated, "We should applaud the Ukrainians for being able to negotiate an agreement and also fight climate change." Liberal House leader [[Karina Gould]], argued the Tories were "abandoning Ukraine and not taking climate change seriously", and accused them of "American-style, right-wing politics". [[Pierre Poilievre]], the leader of the Opposition, called the carbon tax stipulation "cruel" and stated, "It is disgusting, that Trudeau’s ideological obsession with taxing working-class people, seniors and suffering families has come ahead of what should have been a free trade agreement."<ref>{{Cite web|url=https://globalnews.ca/news/10112455/canada-ukraine-trade-deal-carbon-pricing-poilievre/|title=Carbon pricing mention in updated Ukraine trade deal sparks political spat - National &#124; Globalnews.ca|website=Global News}}</ref>

By the end of 2024, opinion polls showed the ruling Trudeau Liberals were 20 points behind the [[Conservative Party of Canada]], which was using the slogan "Axe the Tax" in their platform.<ref>{{Cite web|url=https://abacusdata.ca/conservative-open-up-largest-lead-yet/|title=Abacus Data Poll: Conservatives open up their largest lead yet.|first=David|last=Coletto|date=11 April 2024}}</ref> Many Liberals, worried about projected losses in the 2025 federal election, pushed for Justin Trudeau to resign, which he eventually announced on January 6, 2025. The party former [[Governor of the Bank of Canada]], [[Mark Carney]], and within a few hours of being sworn in as Canada's 24th prime minister on March 14, 2025, Carney signed a declaration ending the consumer carbon tax and the rebate. Carney stated in his platform that "further measures to make up for the lost impact of the consumer carbon tax" would be implemented.<ref>{{Cite web|url=https://markcarney.ca/media/2025/01/mark-carney-presents-plan-for-change-on-consumer-carbon-tax|title=Mark Carney presents plan for change on consumer carbon tax|website=English}}</ref><ref>{{Cite web|url=https://globalnews.ca/news/11082822/mark-carney-consumer-carbon-price-terminated-immediately/|title=Carney says consumer carbon price ‘eliminated’ immediately &#124; Globalnews.ca|website=Global News}}</ref> Alberta Premier [[Danielle Smith]] warned of forthcoming increased industrial carbon taxes, which would be passed onto consumers without a rebate program in effect.<ref>{{Cite web|url=https://globalnews.ca/news/11083507/danielle-smith-carbon-tax-comments/|title=Premier Smith not sold on killing of consumer carbon tax, wants industrial levy plan &#124; Globalnews.ca|website=Global News}}</ref>

==== United States ====
{{Further|Climate change in the United States|Greenhouse gas emissions by the United States|Climate change policy of the United States}}
[[File:Estimated Effect of Carbon Tax in US.png|thumb|upright=1.5|Estimated effect of a carbon tax on sources of United States electrical generation (as of 2012)]]
A national carbon tax in the U.S. has been repeatedly proposed, but never enacted. For instance, on 23 July 2018, Representative [[Carlos Curbelo]] (R-FL) introduced H.R. 6463,<ref>H.R. 6463 https://www.congress.gov/bill/115th-congress/house-bill/6463 {{Webarchive|url=https://web.archive.org/web/20211120191535/https://www.congress.gov/bill/115th-congress/house-bill/6463|date=20 November 2021}}</ref> the "MARKET CHOICE Act", a proposal for a carbon tax in which revenue is used to bolster American infrastructure and environmental solutions.<ref>{{Cite web |last=Curbelo |first=Carlos |date=2018-08-16 |title=H.R.6463 - 115th Congress (2017-2018): MARKET CHOICE Act |url=https://www.congress.gov/bill/115th-congress/house-bill/6463 |url-status=live |archive-url=https://web.archive.org/web/20211120191535/https://www.congress.gov/bill/115th-congress/house-bill/6463 |archive-date=20 November 2021 |access-date=2021-10-16 |website=www.congress.gov}}</ref> The bill was introduced in the House of Representatives, but did not become law.<ref>{{Cite web |last=Curbelo |first=Carlos |date=2018-08-16 |title=Actions - H.R.6463 - 115th Congress (2017-2018): MARKET CHOICE Act |url=https://www.congress.gov/bill/115th-congress/house-bill/6463/actions |url-status=live |archive-url=https://web.archive.org/web/20211017030951/https://www.congress.gov/bill/115th-congress/house-bill/6463/actions |archive-date=17 October 2021 |access-date=2021-10-17 |website=www.congress.gov}}</ref>

A number of organizations are currently advancing national carbon tax proposals. To address concerns from conservatives that a carbon tax would grow government and increase cost of living, recent proposals have centered around revenue-neutrality.<ref>{{Cite web |date=2019-07-12 |title=Revenue-neutral carbon tax: The climate policy that could appeal to conservatives » Yale Climate Connections |url=http://yaleclimateconnections.org/2019/07/revenue-neutral-carbon-tax-climate-policy/ |url-status=live |archive-url=https://web.archive.org/web/20211019154910/https://yaleclimateconnections.org/2019/07/revenue-neutral-carbon-tax-climate-policy/ |archive-date=19 October 2021 |access-date=2021-10-17 |website=Yale Climate Connections |language=en-US}}</ref><ref name="auto" /> The [[Citizens' Climate Lobby]] (CCL), republicEn (formerly E&EI),<!-- <ref>{{Cite web |title=republicEn - Home of the EcoRight |url=https://republicen.org/ |access-date=2023-03-24 |website=republicEn |language=en-US |archive-date=24 March 2023 |archive-url=https://web.archive.org/web/20230324083510/https://republicen.org/ |url-status=live }}</ref> --> the [[Climate Leadership Council]] (CLC), and Americans for Carbon Dividends (AFCD) support a revenue-neutral carbon tax with a border adjustment. The latter two organizations advocate for a specific framework called the Baker-Shultz [[Carbon fee and dividend|Carbon Dividends Plan]], which has gained national bipartisan traction since its announcement in 2017.<ref>{{Citation |last=Halstead |first=Ted |title=A climate solution where all sides can win |date=April 2017 |url=https://www.ted.com/talks/ted_halstead_a_climate_solution_where_all_sides_can_win |access-date=2021-10-17 |archive-url=https://web.archive.org/web/20211017030951/https://www.ted.com/talks/ted_halstead_a_climate_solution_where_all_sides_can_win |url-status=live |language=en |archive-date=17 October 2021}}</ref><ref>{{Cite web |date=2017-02-08 |title=GOP senior statesmen making push for a carbon tax |url=https://www.foxbusiness.com/markets/gop-senior-statesmen-making-push-for-a-carbon-tax |url-status=live |archive-url=https://web.archive.org/web/20211017030952/https://www.foxbusiness.com/markets/gop-senior-statesmen-making-push-for-a-carbon-tax |archive-date=17 October 2021 |access-date=2021-10-17 |website=Associated Press |language=en-US}}</ref> The central principle is a gradually rising carbon tax in which all revenues are rebated as equal dividends to the American people.<ref>{{Cite web |date=4 March 2021 |title=The Four Pillars of the Carbon Dividends Plan |url=https://clcouncil.org/our-solution/ |url-status=live |archive-url=https://web.archive.org/web/20211017030954/https://clcouncil.org/our-solution/ |archive-date=17 October 2021 |access-date=2021-10-17 |website=Climate Leadership Council |language=en-US}}</ref> This plan is co-authored by and named after Republican elder-statesmen [[James Baker]] and [[George Shultz]].<ref>{{Cite web |date=5 February 2017 |title=The Conservative Case for Carbon Dividends |url=https://clcouncil.org/report/the-conservative-case-carbon-dividends/ |url-status=live |archive-url=https://web.archive.org/web/20211017030954/https://clcouncil.org/report/the-conservative-case-carbon-dividends/ |archive-date=17 October 2021 |access-date=2021-10-17 |website=Climate Leadership Council |language=en-US}}</ref> It is also supported by companies including [[Microsoft]], [[PepsiCo|Pepsico]], [[First Solar]], [[American Wind Energy Association]], [[ExxonMobil|Exxon Mobil]], [[BP]], and [[General Motors]].<ref>{{Cite web |last=Roberts |first=David |date=22 June 2018 |title=Energy lobbyists have a new PAC to push for a carbon tax. Wait, what? |url=https://www.vox.com/energy-and-environment/2018/6/22/17487488/carbon-tax-dividend-trent-lott-john-breaux |url-status=live |archive-url=https://web.archive.org/web/20201111223306/https://www.vox.com/energy-and-environment/2018/6/22/17487488/carbon-tax-dividend-trent-lott-john-breaux |archive-date=11 November 2020 |access-date=24 August 2019 |website=Vox}}</ref><ref>{{Cite web |title=Founding Members |url=https://clcouncil.org/founding-members/ |url-status=live |archive-url=https://web.archive.org/web/20211010193629/https://clcouncil.org/founding-members/ |archive-date=10 October 2021 |access-date=2021-10-10 |website=Climate Leadership Council |language=en-US}}</ref>