Carbon pricing has key role to play in achieving net zero goals

New report aims to help clarify how net zero can be achieved  

New York, September 22, 2021 – A new report released today by the Carbon Pricing Leadership Coalition (CPLC) aims to lay out how to harness the potential of carbon pricing in implementing strategies to get to net zero emissions. The Report was prepared by CPLC’s Task Force on Net Zero Goals and Carbon Pricing which comprises senior leaders from the public and private sector and civil society.

The report notes that a number of commitments are being made by countries and companies to reach net zero by 2050. It aims to help overcome the lack of a common understanding of what net zero means and suggest credible pathways to get there, in particular, the role of carbon pricing in helping countries and companies achieve reduced emissions.    

“We need urgent and concerted action that can deliver the most impactful emissions reductions possible," said Juergen Voegele, Vice President for Sustainable Development, World Bank. "Putting a high enough price on carbon will boost investments and deliver technological changes that together help us reach net zero. It’s a vital tool that we need to see being used much more widely." 

The report emphasizes the need for urgent emission reductions and investments in carbon removals and the important role of carbon pricing, as part of a suite of policies, to drive high impact emission reductions and leverage transformational investment.

The Report and the Taskforce underscored that to ensure credibility and public support, net zero targets and strategies must be transparent, ambitious, inclusive and aligned with social and economic development objectives.  Report is a call to action for governments, businesses, and civil society to seize the opportunity to drive credible climate action to achieve net zero by 2050, ensuring that it does so in a socially fair and just way. 

The Report also shares a wealth of experiences from public and private sectors on best practices for national transitions, business ambition, and sustainable finance in the transition to net zero. Specifically, provides actionable insights on credible measuring and communication of progress toward net zero.   

"We welcome the Report of the Task Force on Net Zero Goals and Carbon Pricing as it highlights the key role that carbon pricing can play in the transition of our economies and the fight against climate change, but it cannot run alone, robust policies have to share the burden. What concerns the most is that we have allowed 1.1°C of warming already, in a short period of time, putting the goal of the Paris agreement at risk.  This decade is critical to achieve the goals. Strong political will, robust policies and enabling instruments should bring Parties back on track again. Carbon pricing is one of the most cost-effective policy tools for emissions reduction, because if the price is well defined, the costs of carbon can be properly internalized. Chile is heading towards a huge transformation of its energy system aiming at carbon neutrality before mid-century. The right carbon price and ancillary policies will be needed and we are working hard to make it possible”. Mr. Juan Carlos Jobet, Minister of Energy and Mining of Chile and CPLC High-Level Co-Chair.

To read the key messages and download the report click here