9th March 2018

OECD Taxing Energy Use 2018

OECD Taxing Energy Use 2018 report describes patterns of energy taxation in 42 OECD and G20 countries (representing approximately 80% of global energy use), by fuels and sectors over the 2012-2015 period.

In 2015, outside of road transport, 81% of emissions were untaxed, according to the report. Tax rates were below the low-end estimate of climate costs (EUR 30/tCO2) for 97% of emissions.

Meaningful tax rate increases have largely been limited to the road sector. Fuel tax reforms in some large low-to-middle income economies have increased the share of emissions taxed above climate costs from 46% in 2012 to 50% in 2015. Encouragingly, some countries are removing lower tax rates on diesel compared to gasoline. However, fuel tax rates remain well below the levels needed to cover non-climate external costs in nearly all countries, OECD said in their press release.

As for the Czech Republic, energy use and the CO2 emissions associated with it are shown for six economic sectors: road transport, domestic offroad transport, industry, agriculture and fishing, residential and commercial, and electricity


  • Of the six economic sectors, the road sector is taxed at the highest rates, both in terms of the fuels’ energy and carbon content. Within the road sector, gasoline is taxed at the highest effective tax rate, diesel is taxed at a lower rate in terms of TJ and in terms of CO2. Natural gas and LPG are also taxed, but at substantially lower effective rates than gasoline and diesel. Biofuels are untaxed.
  • Fossil fuels used in the off-road sector are taxed, but at lower effective rates than fuel use in road transport. Fuels used for commercial aviation and domestic navigation are untaxed.
  • Fossil fuels used in the industry, agriculture and fishing and residential and commercial sectors are taxed, but statutory and effective rates vary across the main non-road sectors: Diesel used for industrial and commercial heating and in agriculture is taxed at a reduced rate; Natural gas, LPG and coal and coke consumed for residential heating and used for combined heat and power (CHP) generation are untaxed.
  • Elecricity output is taxed (per MWh). Fuels used to generate electricity are untaxed

>> Country summary with more details.


According to OECD Effective Carbon Rates report published in Autumn 2016, in 2012, effective carbon rates in the Czech Republic consisted primarily of specific taxes on energy use and to a lesser extent of permit prices from the EU ETS. The Czech Republic did not have an explicit carbon tax. The Czech Republic priced 77% of its energy related CO2 emissions, and 16% were priced at an ECR above EUR 30 per tonne of CO2. Emissions priced at this level were primarily emitted by road transport. More than 30% of emissions from the industry sector were covered by taxes, roughly 20% were covered by the EU ETS, and the coverage of taxes and ETS overlapped for another 20% of emissions of that sector. Permit prices from EU ETS were significant component of the ECR in the electricity sector.

Members of the American Chamber of Commerce in the Czech Republic