Some countries have made a lot of money from their carbon taxes

Billions have been made from taxing carbon

Offset fossil fuel use with a high price

How many countries have carbon pricing in place?

Billions have been made from taxing carbon

Carbon taxes are a relatively new concept in the world of government policy but some countries have implemented their own version of this tax and are earning a lot of revenue from their citizens while trying to alter their behaviors. You might be surprised by just how much some countries have brought in.

What is a carbon tax?

A carbon tax is essentially a fee being imposed on the burning of fossil fuels such as oil, gas, and coal. The tax is meant to reduce and someday eliminate the use of fossil fuels by making users pay for their use according to the Carbon Tax Center.

Offset fossil fuel use with a high price

“If set high enough,” the Carbon Tax Center explained, “it becomes a powerful monetary disincentive that motivates switches to clean energy across the economy… by making it more economically rewarding to move to non-carbon fuels and energy efficiency.”

How many countries have carbon pricing in place?

According to the United Nations Framework Convention on Climate Change, at least 40 different countries and 26 sub-national jurisdictions have put a price on carbon that has covered roughly 8 gigatons of emissions, about 15% of the world's total.

The methods vary a lot

Understanding the various ways carbon is being priced and taxed around the world can be difficult but the World Bank collected data on global carbon revenues in 2022 and Visual Capitalist used that data to work out what the top fifteen countries were making in carbon taxes.

Tens of billions were made in 2022

Tens of billions were made in carbon tax revenue by the top fifteen countries and you might be surprised by the two countries that collected the most carbon tax revenue. So which two countries made the most? Let’s find out.

15. South Africa

Government carbon tax revenue: $0.1 billion

Photo by Den Harrson on Unsplash

14. Singapore

Government carbon tax revenue: $0.1 billion

Photo by Rogan Yeoh on Unsplash

13. Mexico

Government carbon tax revenue: $0.2 billion

12. Argentina

Government carbon tax revenue: $0.3 billion

11. Portugal

Government carbon tax revenue: $0.5 billion