Carbon pricing is seen as a key instrument in mitigating climate change. An ever greater share of global greenhouse gas emissions has been covered by carbon pricing in recent years. In 2017, around 13 percent of the global greenhouse gas emissions will presumably be covered by a carbon tax programme or an emissions trading scheme.
With the aim to further promote carbon pricing, the Carbon Pricing Leadership Coalition was called into being by the World Bank in 2015. It brings together leaders from national and sub-national governments, the private sector and civil society to support the implementation of existing carbon pricing policies and drive the introduction of new policy measures. The CPLC thus serves as a platform for dialogue, enabling participants to exchange views and experience with carbon pricing policies and instruments. Carbon pricing in companies also plays a role. Through dialogue and collaboration, the introduction of carbon pricing policies and instruments is to be promoted and implementation of existing policies strengthened.
To achieve this goal, the Coalition implements actions by means of three working groups. One is responsible for collating the experience gained with carbon pricing worldwide and for developing strategies to develop and introduce carbon pricing instruments. A second works to mobilise industry support for carbon pricing. It builds on the positive experience made by companies in this area to date and highlights available options for carbon pricing implementation. The third working group promotes the role of the CPLC as a dialogue platform by offering participants the opportunity to exchange views on and experience with carbon pricing policies. In addition to experience on the technical challenges involved in the use of carbon pricing, the Coalition also promotes policy-level dialogue between governments and industry to identify and flesh out the most urgent issues and arrive at solutions. At the political level, these activities are flanked by the Carbon Pricing Panel comprising the heads of seven national and sub-national governments together with the highest-ranking representatives of the World Bank, the IMF and the OECD.
With the aim of further improving the scientific basis on which to introduce carbon pricing, the CPLC created the High-Level Commission on Carbon Pricing. Under the joint chairmanship of Lord Nicholas Stern and Joseph Stiglitz, economists, energy experts and climate change researchers work together to drive implementation of the Paris Agreement. In its work, the High-Level Commission builds on existing research on both carbon pricing and climate change policies. The Commission’s aim is to identify carbon pricing corridors which can be used to design carbon pricing and other policy instruments. Initially, those corridors will differ greatly according to sector and region, and will become more aligned over time. In determining pricing corridors, it is hoped that a path to rapid decarbonisation will be revealed which will also enable implementation and achievement of the UN Sustainable Development Goals.
January 2019 Carbon Pricing Research Conference