Carbon Tax (CO2 Tax) - Finland introduced a carbon tax (or CO2 tax) based on the carbon content of fossil fuels in January 1990 as an instrument for climate change mitigation.
- Location: finland
- By: Finland
- Type: National
- Source: UNCSD Secretariat (2010) Questionnaire for the Member States on Experiences, Success Factors, Risks and Challenges with Regard to Objective and Themes of UN Conference on Sustainable Development (UNCSD)
- Year: 1990
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Carbon Tax (CO2 Tax)
Finland introduced a carbon tax (or CO2 tax) based on the carbon content of fossil fuels in January 1990 as an instrument for climate change mitigation."The tax rate evolved from 1.12/t CO2 in 1990 to ?20/t CO2 in 2010. Some deviations existed: natural gas met a reduced rate, and peat was exempted in 2005-2010. In 1994-1996 a combined tax base of carbon+energy content was applied. Since 1997 the carbon tax was imposed only on traffic fuels and heating fuels; electricity was taxed per kWh and the fuels were exempted. CO2 tax revenues in 2010 were approximately 500 million (some 15% of total energy taxes). "