Carbon taxes aim to curb CO2 emissions by increasing the cost of carbon-intensive activities and encouraging the adoption of cleaner energy alternatives.
This figure lists the 15 countries with the highest CO2 tax revenues in 2022. This data is taken from the World Bank’s Carbon Pricing Status and Trends Report, published in April 2023.
France and Canada lead in global carbon tax revenue
In 2022, the top 15 countries generated approximately $30 billion in revenue from carbon taxes.
France and Canada are the leaders in this respect, accounting for more than half of the total. Both countries have introduced comprehensive carbon pricing systems that cover a wide range of sectors, including transportation and industry, and have set relatively high carbon tax rates.
| Country | Government revenue in 2022 ($ billions) |
|---|---|
| France | $8.9 |
| Canada | $7.8 |
| Sweden | $2.3 |
| Norway | $2.1 |
| Japan | $1.8 |
| Finland | $1.7 |
| Switzerland | $1.6 |
| United Kingdom | $0.9 |
| Ireland | $0.7 |
| Denmark | $0.5 |
| Portugal | $0.5 |
| Argentina | $0.3 |
| Mexico | $0.2 |
| Singapore | $0.1 |
| South Africa | $0.1 |
In Canada, total carbon tax revenues include both national and provincial taxes.
The Paris Climate Agreement aims to limit global warming to 1.5–2°C by 2100 relative to pre-industrial levels. While carbon pricing has been acknowledged internationally as one of the more effective mechanisms for reducing CO2 emissions, research is divided over what the global average carbon price should be to achieve these goals.
Recent research shows that carbon pricing needs to be supported by other policies and innovations. According to the Queen’s University report, there is no viable carbon pricing scenario high enough to limit emissions enough to achieve warming of less than 2.4°C on its own.