Austria's Entry into CO2 Pricing

This instrument is intended to provide incentives for restructuring economic and lifestyle patterns that not only help mitigate climate change, but also strengthen prosperity, resilience and competitiveness.

The tax reform package of the Austrian federal government ("eco-social tax reform") presented on 3 October 2021, includes CO₂ pricing as a new instrument in the mix of economic policy instruments. However, there still remain uncertainties concerning the design and effect of this instrument.