The Austrian climate research community is taking the opportunity to comment on the Eco-Social Tax Reform Act 2022 Part I. In principle, the introduction of an eco-social tax is welcomed as an important instrument for advancing climate protection whilst taking social aspects into account. However, even under optimistic assumptions about the steering effect of the tax reform, the current draft falls well short of what is needed to meet climate policy commitments.

The "climate bonus" could have an even more progressive effect and support regional policy objectives if better designed. Furthermore, due to the over-compensation of tax payments and the associated rebound effects, it could end up having a counterproductive impact on climate policy.

Read the statement from 06.12.2021 for proposed amendments to improve effectiveness, targeting accuracy and social compatibility.