Austria decides on CO2 pricing of fossil fuels

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As part of its eco-social tax reform, a levy of 30 euros per tonne of fossil fuels will be charged in Austria from 2023. The tax will then rise to 55 euros per tonne in a second step due in 2025.

Austria decides on CO2 pricing of fossil fuels
Photo: PxHere

The Austrian parliament passed a climate tax on fossil fuels last week.  To compensate for the higher prices of petrol and diesel fuel, heating oil and natural gas, taxpayers will receive a so-called climate bonus. This annual payment of 100 to 200 euros will vary regionally.

The pricing of CO₂ emissions will initially be 30 euros per tonne. By 2025, the fee will be increased to 55 euros, in accordance with German regulation – however, scientists and environmental organizations had demanded higher prices, reports the German Press Agency.

To relieve the pain of the transport industry caused by the higher costs, the government promised to use the additional income from CO2 pricing to make new technologies more available.

“At the moment it is hardly possible for the transport industry to use alternative drive systems in an economically sensible way. That’s why we need appropriate framework conditions that make it easier to switch to climate-neutral mobility. This means that the technology switch must be promoted, whether to e-mobility , hydrogen, eFuels or another climate-neutral technology,” said Alexander Klacska, Chairman of the Federal Division Transport and Transport in the Austrian Chamber of Commerce, when discussing the law in October.

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