The FINANCIAL — Just months after the Paris Agreement at COP21, the World Bank on March 8 brought together over 30 developed and developing countries at the Carbon Pricing: Sustaining the Momentum after COP21 conference in Zurich to take stock and discuss opportunities and challenges to use carbon pricing to reduce greenhouse gas emissions.
“We are pleased to host such an important dialogue on carbon pricing today in Zurich. In our view, putting a price on greenhouse gases is a prerequisite for reducing emissions in the most cost-efficient and effective way. An important means to this end is using market mechanisms, such as emission trading systems, as well as tax schemes and offset mechanisms,” said Ivo Germann, Head of Operations for Economic Cooperation and Development, State Secretariat for Economic Affairs, Government of Switzerland
In the run-up to COP21, more than 185 countries submitted national proposals for climate action – the nationally determined contributions (NDCs) – which will be important drivers in their transition toward a low-carbon economy. Of these, 64 include positive statements on the use of carbon markets, according to the World Bank.
To achieve this, many governments have already begun to put a price on greenhouse gas emissions, and private companies are calling for widespread use of carbon pricing policies as a way to maintain competitiveness, create jobs, and encourage innovation while reducing emissions.
“This event gives us a chance to talk about concrete actions that countries are pursuing, the challenges that lie ahead and ways that we support our clients to design and implement carbon pricing solutions that put countries and companies on a low carbon development pathway,” said James Close, Director in the World Bank’s Climate Change Group.
The Carbon Pricing Leadership Coalition, the Partnership for Market Readiness and the Networked Carbon Markets initiative – a set of complementary World Bank Group initiatives – are facilitating discussions on the growing momentum and concrete steps to advance carbon pricing, as well as the emergence and linking of global carbon markets to scale up emission reductions. To promote dialogue and exchange between countries, technical workshops will also be held on domestic actions to reduce emissions – including emission trading systems (ETS) and carbon taxation.
As an output of the World Bank’s efforts on carbon pricing, the Partnership for Market Readiness today published Emissions Trading in Practice: A Handbook on Design and Implementation, jointly with the International Carbon Action Partnership (ICAP). This Handbook distils best practices and key lessons from more than a decade of practical experience with ETSs worldwide, compiling input from over 100 international experts and practitioners. The Handbook sets out a 10-step process, with a series of concrete decisions and actions to be taken, to assist countries with the design, implementation, and operation of an effective ETS.
“The collaboration between the PMR and ICAP has been a unique opportunity to mobilize the carbon market community and capture available expertise in a practical and empirically-grounded guide for policymakers. Here in Zurich, we will have an opportunity to discuss the practicalities of establishing an ETS, and discuss real challenges and solutions,” said Constanze Haug, Head of the ICAP Secretariat.
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