Green innovation is currently gaining much global attention, with the rising concern of consumers, authorities, and the broader public about resource depletion and environmental degradation. The automotive industry is a major source of manufacturing waste that degrades ecosystems and biodiversity. This research aims to investigate if carbon and fuel taxes are effective policies by testing their correlation to climate mitigation technology patents in the automotive industry. The data has been gathered across 13 European countries from 2009 to 2019. The empirical strategy employed in this paper to analyse the correlation between variables is the panel data method. Empirical findings indicated a negative relationship between carbon taxes and green innovation, the exact opposite of fuel taxes. The study's unexpected correlation between green technology and carbon taxes is dissected and explained in several sections. Based on the empirical findings, this study proposes potential policies that would further stimulate green innovation in the automotive industry.