0103 GMT February 19, 2020
The report, which presents the latest developments of carbon pricing around the world, finds that in the past year new carbon pricing initiatives continued to emerge, mostly at the sub-national level and in the Americas, esi-africa.com wrote.
These include new carbon pricing initiatives in Canadian provinces and territories, driven by Canada’s federal carbon pricing approach.
At a national level, initiatives were launched in Argentina, South Africa, and Singapore; and countries exploring new or complementary policies include Colombia, Mexico, the Netherlands, Senegal, Ukraine, and Vietnam.
However, the report concludes that both the amount of emissions covered by carbon pricing and the prices levels are still too low to meet the objectives of the Paris agreement.
About 20 percent of global greenhouse gas emissions are covered by regional, national and sub-national carbon pricing initiatives and, of these, less than five percent are currently priced at a level consistent with achieving the temperature goals of the Paris agreement.
“Carbon pricing remains one of the most promising measures to decarbonize our economies, by pricing harmful pollution and boosting opportunities for low-carbon growth,” said John Roome, senior director for climate change, World Bank.
“But to really have transformation at scale, both coverage and price levels need to be significantly higher. There is now a wealth of experience on how to implement carbon pricing effectively that others can learn from.”
For the first time, the report also examined the critical role of implicit carbon pricing. This highlights the opportunities to design effective fiscal policies, such as fossil fuel subsidies and fuel taxes, to drive climate action.
The launch event took place at Innovate4Climate, the World Bank Group’s flagship annual event on climate finance, investment and markets which brings together global business, policy and finance leaders to discuss innovative climate finance solutions.