Carbon Pricing Leadership Coalition
Carbon emissions from the burning of fossil fuels already carry a hefty price, though people are rarely aware of it. The bill comes to all of us masked in public health care costs, harm to the environment, and the effects of
But what if the cost of carbon emissions was instead paid at the source, where choices about fuel use are made? How would that change the incentive structure underpinning our global reliance on fossil fuels?
That's the idea behind carbon pricing. It shifts the social costs of climate change to the source of the pollution, encouraging polluters to reduce emissions and invest in clean energy and low-carbon growth.
So how do we put a price on carbon, and why do so many government and business leaders support it?
In September 2014, the idea of a Carbon Pricing Leadership Coalition formed from a groundswell of support for carbon pricing at the UN Climate Summit, where 74 countries and more than 1,000 companies expressed support for carbon pricing. The Coalition officially launched at COP21 in Paris, with the goal to expand the use of effective carbon pricing policies that can maintain competitiveness, create jobs, encourage innovation, and deliver meaningful emissions reductions.
On October 19, 2015, World Bank Group President Jim Yong Kim and International Monetary Fund Managing Director Christine Lagarde launched The Carbon Pricing Panel with heads of government and supported by private sector leaders.
Panel members are demonstrating leadership and calling on their peers to join them in putting a price on carbon.
A growing number of leaders – national, local and corporate – are speaking out in support of carbon pricing. Listen as they describe their experiences with carbon pricing and the reasons they consider it a powerful and efficient way to reduce emissions.
views on pricing carbon
The transition towards a low-carbon economy multiplies the challenges and the opportunities we are facing. In this rapidly changing environment, economic actors do not always have a clear vision of their prospects in tomorrow’s economy, nor do they necessarily have all the tools needed to exploit the full range of opportunities.
This year’s State and Trends of Carbon Pricing report, launched recently in Vietnam, includes the first deep dive analysis of the carbon pricing initiatives of countries’ climate plans submitted in Paris last year and looks specifically at how international trading of carbon assets would affect the cost of carbon mitigation. Of 101 countries considering the use of carbon pricing, the vast majority indicate they will use international approaches to emissions trading per their NDC pledges.
The remarkable pace at which nations of the world have ratified the Paris Agreement on climate change gives us all hope. It signals the world is ready to take the actions we need to keep global warming below 1.5 degrees Celsius. We know, however, that delivering on Paris comes with a high price tag, and that we need to help countries not just transition toward renewable energy but unlock the finance needed to get there.
In his latest blog post, Nat Keohane, VP for Global Climate at Environmental Defense Fund (EDF) and a member of the CPLC Steering Committee, writes about the International Coalition for Sustainable Aviation's and EDF's efforts to get a market-based measure for carbon emissions from international aviation adopted in ICAO.
Shifting to a low carbon path of economic development requires adopting policies that cut carbon at the lowest possible cost and that incite businesses and households to find new ways to produce and consume in a carbon neutral way. Carbon prices are indispensable to accomplish this goal.
The Global Commission on the Economy and Climate, a major international initiative led by 24 former heads of state and finance ministers, heads of international organisations, and business leaders, launches its third major report.