The recently released OECD report reveals 70% of energy-related CO2 emissions from advanced and emerging economies are entirely untaxed.

Emissions from road fuels are among those most highly taxed but rarely fully reflect the cost of environmental harm. As for the energy-related CO2emissions outside of road transport, 97% of these are undertaxed.

Overall, the report shows that for 44 countries included in the study and accounting for over 80% of energy emissions, taxes on polluting sources of energy are not set anywhere near the levels needed to reduce the risks and impacts of climate change and air pollution.

Therefore, the OECD concludes that in order to encourage a shift to low-carbon energy, transport, industry and agriculture, it will be necessary to adjust taxes, along with state subsidies and investment. Consult the full report here and the summary here.