Paris Climate Conference/carbon pricing
On the sidelines of COP21, the President, along with several heads of state, the World Bank, the IMF, local government bodies and business leaders from around the world, has launched a Carbon Pricing Leadership Coalition.
The Coalition’s members adopted a joint action plan to advance carbon pricing, committing to sharing experience of successful public policies, mobilizing businesses, and promoting dialogue to increase the use of carbon pricing.
Carbon pricing is an essential tool to enable economic stakeholders to commit resolutely to the transition towards a low-carbon economy and reduce greenhouse gas emissions as effectively as possible. The aim is not to fix a single price: the goal has to be to promote the gradual expansion of the coverage of global emissions by carbon pricing.
Existing mechanisms (EU ETS, Indian coal tax, US Clean Power Plan etc.) and future ones (ETS market in China) cover countries representing 89% of the GDP of the G20, or 75% of the global economy, by 2018. So the majority of the most carbon-intensive sectors are, or will very soon be, covered by a carbon price in most of the world’s major economies.
Although it is too low everywhere, carbon pricing is no longer an exception and is starting to become the rule. With the Coalition, we are going to foster and accelerate the adoption of carbon pricing, so that today’s investments create the conditions for more sustainable growth for a long time ahead./.