CO2 Pricing in the Austrian Tax Reform 2022-2024
The tax reform package of the Austrian federal government ("eco-social tax reform") presented on 3 October 2021, includes CO2 pricing as a new instrument in the mix of economic policy instruments. However, there still remain uncertainties concerning the design and effect of this instrument. With this pricing of greenhouse gases, Austria is following an increasingly strong trend both in Europe and globally. This instrument is intended to provide incentives for restructuring economic and lifestyle patterns that not only help mitigate climate change, but also strengthen prosperity, resilience and competitiveness.