Federal German Environment Ministry supports CPLC with two million euros in funding

January 2018 - The German Federal Government is supporting the Carbon Pricing Leadership Coalition (CPLC) with funding in the amount of two million euros. Launched by the World Bank in 2015, the CPLC promotes global dialogue on the introduction of carbon pricing as a cost-effective policy instrument. The CPLC is seen by the international community as a key carbon pricing forum and a wide range of stakeholders use it as a dialogue platform. More than 25 national and regional governments, over 150 companies and some 30-plus strategic partners - among them universities and non-governmental organisations - have joined the Coalition so far. The CPLC has thus become one of Germany's major partners in the carbon pricing sector.

A range of activities have been initiated to promote carbon pricing since the Coalition was formed. The CPLC has, for example, hosted high-level policy dialogue on promoting exchange of views and experience, published studies on technical issues involved in implementing carbon pricing policies and aided private industry in the design of emission reduction activities. One particular highlight in 2017 saw the publication of the first report of the High-Level Commission on Carbon Prices. Led by Joseph Stiglitz and Lord Nicholas Stern, a group of high-ranking scientists looked at how carbon pricing can serve successful implementation of the Paris Agreement's climate action goals and identified the carbon pricing corridors needed for decarbonisation.

"Effective carbon pricing is needed to provide incentives for investment and innovation in low-carbon infrastructure and technology," says Federal German Environment Minister Barbara Hendricks. "Carbon pricing can help achieve the Paris Agreement goal of limiting global warming to well below two degrees."

Over the next few years, the CPLC wants to further intensify its activities surrounding the introduction of carbon pricing to secure successful implementation of the Paris Agreement.nThe Coalition also wants to step up collaboration with industry sectors, such as shipping, where emission reductions are difficult to achieve. Carbon pricing will be used to tap unexploited potential in these sectors. In addition, a range of pilot projects are to be developed in countries, regions and sectors which could play a pioneering role in the introduction of carbon pricing.

With this new funding payment, Germany aims to actively promote the expansion, development and implementation of price-based climate action policies and instruments. The funding will largely be used to intensify cooperation with partner countries and businesses in Africa, and to identify the specific challenges and opportunities involved in introducing carbon pricing to enable exploitation of Africa's emission reduction potential.

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