European Carbon Tax

The European Carbon Tax is a tax levied by the member states of the European Union at a common rate with the purpose of encouraging an energy transition away from carbon energy towards cleaner, greener renewable energy with less Carbon emissions. The Tax which was introduced as part of negotiations for the 2027 Multi-Annual Financial Framework at a rate of €10 Per Tonne of C02 emitted, is set to increase each year by €2 Per Tonne. The tax sits alongside the European Aviation Tax, European Non-Carbon Industrial Emissions Tax and European Petroleum Tax. Whilst the tax is levied by the member states, 20% of the money raised is collected into the European Energy Transition Fund which funds environmentally friendly projects across the European Union under the direction of the European Commission.