Italy to introduce carbon tax to fund green energy

MILAN, April 17 (Reuters) - Italy will introduce a carbon tax with proceeds earmarked for financing renewable energy production in a revamp of the way clean power is funded, the government said after a cabinet meeting late on Monday.

Italy raised its 2020 renewable energy targets last week while cutting production incentives to solar and other green energy.

The carbon tax, an environmental tax on the carbon content of fuels, is part of fiscal measures aimed to help boost Italy's sluggish economy. They have to be approved by parliament to become law.

The government plans to impose excise duties on energy products depending on their carbon content, in line with European Union plans, and will coordinate the launch of the environmental fiscal measures with other European countries, the government said in a statement. (Reporting by Svetlana Kovalyova; Editing by David Cowell)