LASER TALK: Carbon Pricing Around the World Updated

Map of carbon prices around the world: World Bank’s Carbon Pricing Dashboard:

Carbon Pricing Around the world 

Around the world, carbon pricing initiatives have been implemented or scheduled for implementation in 61 jurisdictions. In total, there are 46 national initiatives and 32 subnational initiatives.

In 2020, these initiatives cover 11 Gt CO2e, representing 20.1% of global GHG emissions. In 2020, these initiatives would cover 12 GtCO2e, representing 22.3% of global GHG emissions. For the most up-to-date information, visit the World Bank’s Carbon Pricing Dashboard.

Additionally, 97 countries have carbon pricing in their commitments to the United Nations. These 97 Parties represent 58 percent of global GHG emissions.

Carbon pricing does reduce emissions. In the June 2020 paper Carbon Pricing Efficacy: Cross-Country Evidence, researchers used data from 142 countries over a period of two decades. They determined that the average annual growth rate of CO2 emissions from fuel combustion has been around 2 percentage points lower in countries that have had a carbon price compared to countries without. Further to that, an additional euro per tonne of CO2 in carbon price is associated with a reduction in the subsequent annual emissions growth rate of approximately 0.3 percentage points, all else equal.

At COP 25 the Carbon Pricing Leadership Coalition conducted a dialogue with real-world examples that showed that businesses that price carbon pollution have the advantage.

As well, the World Bank, and several country partners including Canada, launched the Partnership for Market Implementation at COP25 which will assist countries in the Global South in either improving their current carbon pricing or implementing carbon pricing.

Citizens’ Climate Lobby (CCL) prefers a revenue-neutral and steadily rising carbon tax, called carbon-fee-and-dividend. This approach is simpler and more transparent than cap and trade and thus lends itself better to coordinating carbon prices globally, which will be needed as carbon prices rise.

Lastly, the European Union will have border carbon adjustments enacted by January 2023. Thus, Canada needs an economy-wide carbon price or our exports to Europe will face a border carbon tariff at the European border in 2023.

Learn more here:
The Carbon Pricing Leadership Coalition’s FASTER Principles



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