Carbon Pricing Leadership Coalition

Background and Objectives

With the aim to further promote carbon pricing, the Carbon Pricing Leadership Coalition was called into being by the World Bank in 2015. The CPLC is a voluntary coalition of national and sub-national governments, companies and civil society organisations which, together with the World Bank and other key international institutions, are working towards the pricing of greenhouse gas emissions.

The CPLC serves as a platform for dialogue, enabling participants to exchange their experiences with carbon pricing policies and instruments. Carbon pricing in companies also plays a role in this context. The cooperation is intended to promote the introduction of policy instruments for carbon pricing and to strengthen the implementation of existing policies.

Implementation

In order to further promote carbon pricing, the Coalition is implementing activities in four areas: One area involves the targeted involvement of stakeholders in order to compile the experience gained worldwide in the pricing of greenhouse gases and to develop strategies for the development and introduction of carbon pricing instruments. Another strand of work is aimed at mobilizing support from companies for carbon pricing. In doing so, it draws on the positive experiences that companies have already made in this area and points out possible ways of implementation. A third area of work focuses on improving the scientific basis around carbon pricing, while a fourth area covers the effective communication of carbon pricing.

These activities are politically flanked by the Carbon Pricing Panel, which consists of the heads of government of seven national and sub-national governments and is complemented by the highest representatives of the World Bank, IMF and OECD. In this way, the Alliance also promotes policy dialogue between governments and business to identify the most pressing carbon pricing issues and develop solutions.

Milestones and Outlook

Since its establishment, the CPLC has implemented numerous dialogues at global and regional level and has contributed to improving knowledge on carbon pricing through numerous publications. Noteworthy is the report of the High-Level Commission on Carbon Prices, published in May 2017, which identifies different price corridors for the pricing of CO₂. The Guide to Communicating Carbon Pricing, which was published in 2018, provides support in the design and implementation of effective communication strategies for carbon pricing. In 2019, the CPLC and the World Bank Group hosted the world's first international Research Conference on Carbon Pricing. Most recently, the report of the High Level Commission on Carbon Prices and Competitiveness was published, which addresses industry and policymakers' concerns that setting a carbon price could have a negative impact on competitiveness.

In the future, the CPLC will further strengthen the involvement of developing countries and sub-national actors in order to increase support for carbon pricing at institutional level. The coalition will continue to promote the development of carbon pricing instruments that are widely accepted and can be successfully applied in the long term.