Article originally posted on the World Bank website.
New Principles to Help Accelerate the Growing Global Momentum for Carbon Pricing
- New report shows the number of implemented or planned carbon pricing schemes around the world has almost doubled since 2012, with existing schemes now worth about $50 billion.
- About 40 nations and 23 cities, states or regions are using a carbon price. This represents the equivalent of about 7 billion tons of carbon dioxide, or 12 percent of annual global greenhouse gas emissions.
- And new report lays out six key principles to put a price on carbon – the FASTER principles – for putting a price on carbon based on economic principles and experience of what is already working around the world
The spotlight is on New York now with the upcoming United Nations meeting on the new Sustainable Development Goals, Climate Week New York, and in about two months, global leaders will meet again in Paris for COP 21.
The decisions made in New York and Paris will set the course for development for years to come. But while these are top level, pivotal meetings, actors around the world are not waiting for a global agreement to act. They are already putting a price on carbon dioxide and other greenhouse gas emissions to drive clean investment. This includes the private sector. And we’ve seen companies from the oil and gas industry – calling for widespread carbon pricing. Today, over 400 businesses worldwide are using an internal price on carbon to guide their investments.
” The world needs to find effective ways to reduce carbon pollution. We must design the best ways to price carbon in order to help cut pollution, improve people’s health, and provide governments with a pool of funds to drive investment in a cleaner future and to protect poor people. “
Jim Yong Kim
Around the world, about 40 national and 23 city, states and regions are using carbon pricing schemes, like emissions trading systems (ETS) or carbon taxes. These represent about 7 billion tons of carbon dioxide, or 12% of global greenhouse emissions, a threefold increase over the past decade.
To help countries navigate the waters, the World Bank Group, together with the OECD and with input from the IMF, also released a report today on the FASTER Principles, which helps governments and business develop efficient and cost-effective instruments to put a price on the social costs of emissions.
The FASTER principles are: F for fairness; A for alignment of policies and objectives; S for stability and predictability; T for transparency; E for efficiency and cost-effectiveness and R for reliability and environmental integrity.
Continue reading on the World Bank website.