This weekend, the eco-social tax reform was presented by the federal government, including the introduction of CO₂ pricing. CCCA welcomes the introduction of a CO₂ pricing system in Austria. However, in order to effectively tackle the climate crisis, from a scientific perspective the starting value for CO₂ at 30 €/t is set far too low.

There are various science-based methods for determining a CO₂ price. One approach is to try to approximate the true costs through damage costs, though this method carries significant uncertainties. A more suitable approach appears to be to orientate around Austria's remaining carbon budget – that is, the amount of greenhouse gas emissions that Austria still has available to meet its climate targets. Essential to this is the implementation of a flexible CO₂ price pathway that, through continuous consideration of its actual impact and the interaction with other climate protection instruments and measures, ensures compliance with the carbon budget.

Read the press release here!