International Carbon Pricing Schemes Raised $53 Billion in 2020
By Susanna Twidale
Many international locations are utilizing a worth on carbon to assist meet their local weather targets within the type of a tax or beneath an emissions buying and selling (ETS), or cap-and-trade, system.
The world’s seven largest superior economies final week recognised the position carbon pricing can play in driving innovation and new expertise to hit internet zero emissions.
“Regardless of the social and financial upheaval attributable to COVID-19, jurisdictions and firms haven’t wavered of their dedication to preventing local weather change,” the report mentioned.
There have been 64 world carbon pricing devices in operation in 2021, in contrast with 58 in 2020, overlaying greater than 21% of world greenhouse gasoline emissions, up from 15.1% final yr, the report mentioned.
The rise in emissions lined is basically because of the launch this yr of China’s nationwide ETS – the world’s largest carbon market – initially overlaying about 30% of the nation’s emissions, or some 4 billion tonnes of CO2, the report mentioned.
The rise in revenues generated final yr was primarily attributable to greater costs within the European Union’s ETS, the place the price of carbon permits rose greater than 30%.
The World Financial institution mentioned, nonetheless, that carbon costs in most areas of the world remained effectively beneath ranges wanted to drive adjustments to satisfy the 2015 Paris local weather settlement.
“A majority of carbon costs nonetheless stay far beneath the $40–$80/tCO2e (tonnes carbon dioxide equal) vary wanted in 2020 to satisfy the two Celsius temperature objective,” the report mentioned. “Increased costs will probably be wanted … to achieve the 1.5C goal.”
Almost 200 international locations have signed the Paris settlement, which goals to restrict world warming to effectively beneath 2C (3.6 Fahrenheit) above pre-industrial ranges, and ideally 1.5C.
(Reporting by Susanna Twidale; Modifying by David Clarke)