With 189 member countries, staff from more 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. The World Bank Group works in every major area of development. We national statement of science investment a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face.
We face big challenges to help the world’s poorest people and ensure that everyone sees benefits from economic growth. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. Heads of state and business leaders have challenged the world to double the coverage of emissions subject to carbon pricing by 2020, and double it again within the next decade. In a packed room at COP22, attendees to the Carbon Pricing event “Driving Ambition and Action” witnessed significant announcements such as the newly minted High-level Economic Commission and New Zealand’s declaration to join CPLC along with success stories of climate leadership. To meet the climate challenge and deliver on the Paris Agreement the world needs innovation and forward thinking.
On September 21, technology, policy, entrepreneurship, and financing global leaders met to answer your questions. China, Japan and the Republic of Korea discuss the possibility of linking their emissions trading systems together to enhance regional cooperation on carbon markets in East Asia. Royal DSM has put a so-called internal price on carbon of EUR50 per ton of CO2e. So what does it mean to put a price on carbon, and why do many government and business leaders support it? There are several paths governments can take to price carbon, all leading to the same result. A price on carbon helps shift the burden for the damage back to those who are responsible for it, and who can reduce it. Instead of dictating who should reduce emissions where and how, a carbon price gives an economic signal and polluters decide for themselves whether to discontinue their polluting activity, reduce emissions, or continue polluting and pay for it.
In this way, the overall environmental goal is achieved in the most flexible and least-cost way to society. By creating supply and demand for emissions allowances, an ETS establishes a market price for greenhouse gas emissions. It is different from an ETS in that the emission reduction outcome of a carbon tax is not pre-defined but the carbon price is. The choice of the instrument will depend on national and economic circumstances. Greenhouse gas emissions can also be priced through payments for emission reductions. Some 40 countries and more than 20 cities, states and provinces already use carbon pricing mechanisms, with more planning to implement them in the future.
Together the carbon pricing schemes now in place cover about half their emissions, which translates to about 13 percent of annual global greenhouse gas emissions. The Coalition will collect the evidence base, benefiting from experience around the world in designing and using carbon pricing, and use this input to help inform successful carbon pricing policy development and use of carbon pricing in businesses. It will also deepen understanding of the business and economic case for carbon pricing. Learn more at the Carbon Pricing Leadership Coalition website. Today, the science is unequivocal: Humans have been driving global warming through the extensive burning of fossil fuels. We are already seeing changes in the climate that our current economies were built on. Fourteen of the 15 hottest years since record keeping began over 130 years ago have been since the turn of this century.