Partner voices: blogs, opinions, and analysis
Carbon pricing, meaning carbon taxes and emission trading schemes, is widely recognised as the most cost-effective way to reduce carbon emissions. A growing number of countries and jurisdictions are therefore implementing carbon pricing tools as well as strengthening existing once. Yet carbon pricing is, in the words of John Roome, Senior Director at the World Bank’s Climate Change Group, “nowhere near where it should be [as it] still covers only a small part of global emissions at prices too low to significantly reduce emissions”.
Although climate change represents perhaps the largest, most complex economic opportunity since the industrial revolution(s), many investments are needed to make the transition. Most of the money required (up to 80%) needs to come from the private sector. It is therefore critical that the financial contributions from investors and business are unlocked.
The key? Putting a price on carbon emissions. There is enough evidence to suggest this is by far the best instrument to trigger investors and companies to move faster, especially when combined with other supporting policies.
The ETS Academy Mexico was held on July 23, 24 and 25, 2019 at Casa Lamm in Mexico City. It was a three-day seminar that brought together international experts with officials from different Federal Public Administration (APF) departments relevant to the development of an SCE, with the aim of learning the lessons learned and best practices of international jurisdictions, and facilitate the joint design of the SCE in Mexico.
Navigant, the Generation Foundation, and CDP have developed a briefing paper, Internal Carbon Pricing for Low Carbon Finance. It has actionable insights and key information for investors and banks about using internal carbon pricing.
In a recent report, Resources for the Future (RFF) modeled policy options to further reduce carbon dioxide emissions from the electricity sector in six US states: North Carolina, Pennsylvania, Minnesota, Wisconsin, Illinois, and Michigan. Senior Research Assistant Paul Picciano provides insights into their key findings in this CPLC blog.
Carbon pricing in the news
Enel Foundation has provided research guidance, scientific contributions and funding for an extensive comparative study conducted by the Earth Institute’s Research Program on Sustainability Policy and Management at Columbia University on the suitability of different carbon pricing mechanisms as policy instruments to mitigate climate change in different economic and institutional contexts. The study analyzed the jurisdictional characteristics of 37 countries where carbon pricing mechanisms – both carbon taxes and cap-and-trade schemes – have been implemented or proposed as a means to support decarbonization.
Over the last months, we saw a number of reports released by government agencies and non-governmental organizations (NGOs), including from the business, research and technology communities, that address carbon market expectations, challenges and solutions. These are indicative of ongoing preparatory work ahead of the upcoming negotiations on market mechanisms under Paris Agreement Article 6 (cooperative approaches), expected to conclude at the Santiago Climate Change Conference in December. This Update highlights recent reports and news releases, and provides a backgrounder to the anticipated negotiations on the issue.
The triennial World Energy Congress, one of the most influential energy events in the world, was hosted by the United Arab Emirates in Abu Dhabi. Read a summary of the key discussions that occurred during the Side Event “Sustainable Finance and Carbon Markets: New Opportunities for the GCC?” held on 12th September 2019, at this 24th World Energy Congress.
The World Business Council for Sustainable Development (WBCSD) and its member companies believe that carbon pricing mechanisms are critical to support the urgent efforts required to drive the transition towards a low carbon future and achieving the 1.5oC goal.
The findings, interpretations and conclusions expressed here do not necessarily reflect the views of the Carbon Pricing Leadership Coalition (CPLC). Many of the links on this blog will take you to sites operated by third parties. CPLC cannot guarantee the accuracy or reliability of any information, data, opinions, advice or statements meant on these sites.