Carbon pricing leadership coalition report 2021-2022
This report has been released by the Secretariat of the Carbon Pricing Leadership Coalition (CPLC).
This report provides review on the following:
- Global developments in carbon pricing, implications for the development of the carbon market, and the broad limits of carbon pricing potential.
- Carbon pricing curbs greenhouse gas emissions by imposing tariffs on emissions and/or offering incentives to lower emissions.
There are two main types of carbon pricing:
- Carbon Tax: This is the price that governments charge emitters for each metric ton of carbon dioxide they emit.
- Emissions Trading System (Cap and Trade): This is a tradable-permit system for greenhouse gas emissions. Under this, an upper limit (cap) of greenhouse gas emissions can be set. To this extent emissions are permitted.
Key Findings of Report:
- Currently less than 4% of global emissions are under carbon pricing. This is within the limits required by the year 2030 to meet the global anti-heating targets of the Paris Agreement.
- Many countries have increased their carbon tax rates and taken a more ambitious route.
- Experimental Emissions Trading System (ETS) is being considered in several countries.
- The agreement on Article 6 is further encouraging interest in carbon markets.
- It offers nations an alternative to environmental inclusiveness to avoid double counting. It also paves the way for private capital to enter developing countries.
Carbon Pricing Leadership Coalition (CPLC)
This is a voluntary initiative. It brings together the leadership of government, business, civil society, and academia. It will enhance global understanding of carbon pricing as a means of accelerating and funding effective climate action.
Source – The Hindu
