Iceland's Carbon Tax, introduced in 2010, is part of the Environmental and Resource tax, targeting liquid and gaseous fossil fuels to reduce GHG emissions and promote energy efficiency. The current rate is ISK 5,098 (US$36.51) per ton, indexed annually to inflation. The tax applies to direct CO2 and F-gas emissions, with exemptions for coal and solid fossil fuels used in heavy industry under the EU ETS, and aviation fuel since 2012. Those entitled to VAT refunds under international agreements can also claim a refund on the carbon tax.