In 1990, Finland became the first country to adopt a carbon tax, setting its level at Mk 6.66 per metric ton of CO2. The tax was raised to Mk 13.59 in 1993 and to Mk 38.3 in 1995. It is no longer based purely on carbon content but rather 60/40 on carbon/energy content, the energy content portion being 3.5 Mk per Megawatt Hour. According to Finnish government studies, CO2 emissions are five percent lower than they would be without the tax.
EXPERIENCE:
The Finnish government says that the tax has stimulated investment in renewable energy technology such as biomass gasification.
