2021 Budget - Luxembourg carbon tax

Luxembourg implemented its carbon tax (taxe CO2) on fossil fuels as a way to create a minimum carbon price similar to those in neighboring countries. Luxembourg's carbon tax policy complements the EU ETS, which does not cover emissions from transportation, buildings and shipping. Imposition of the tax was accompanied by increased social support for low-income earners. Some of the revenues accrue to a climate and energy fund.

Source: World Bank Carbon Pricing Dashboard

Want to know more about this policy ? Learn more