State and Trends of Carbon Pricing 2018

No Image Description
Description

This training provides a brief summary and video tutorial of the World Bank's newest 2018 edition of the annual State & Trends of Carbon Pricing Report.

TOC and Guide Section
 
What is the state of play of carbon pricing?

As of May 2018, 45 national and 25 sub-national governments have instituted some form of carbon pricing. These include both carbon taxes and emissions trading schemes (ETS), and cover about 22 percent of worldwide emissions.

  • Carbon prices still vary substantially, from less than US$1/tCO2e to a maximum of US$139/tCO2e.
  • About half of the emissions are now covered by carbon pricing initiatives priced at over US$10/tCO2e (compared to one-quarter of emissions covered in 2017).
  • Governments raised US$33 billion in carbon pricing revenues in 2017 (compared to US$22 billion in 2016).

The list of governments that already practice some method of carbon pricing includes Chile, Colombia, Denmark, the European Union, Finland, France, Ireland, Japan, Korea, New Zealand, Norway, Sweden, and the U.K. Other countries that are considering joining them include Brazil, South Africa, and Turkey.

The country with the biggest carbon footprint, China, started with eight regional GHG emissions trading projects in 2013, and has now launched a nationwide expansion within their electricity sector.

And our neighbor Canada, where some provinces have already had carbon taxes starting with British Columbia in 2008, now requires all provinces to enact some form of carbon pricing beginning in 2019 with a requirement to reduce emissions 30 percent below 2005 levels by 2030.

Of the 15 biggest economies in the world, only three – the United States, India, and Russia – do not have any nationwide carbon pricing in place or in the works.

Where is carbon pricing evolving to?
  • Carbon pricing initiatives continue to emerge.
  • Some carbon prices are increasing, but further rises are needed to be in line with the Paris Agreement.
  • Price levels recommended by the High-Level Commission on Carbon Prices
    • US$40-80/tCO2e by 2020
    • US$50-100/tCO2e by 2030
  • Carbon pricing initiatives can serve multiple environmental and social goals.
  • Deviations from the original plan are common.
  • Jurisdictions use phased approaches to plan for changes.
  • Internal carbon pricing is becoming a popular tool for climate-related financial disclosure.
  • Increased cooperation can accelerate implementation and raise ambition.
  • New technology can help heterogenous, bottom-up and decentralized markets.
  • Implicit carbon pricing and divestment efforts positively interact with carbon pricing
How does Carbon Pricing fit in the international context of the Paris Agreement?
  • Within the context of the Paris Agreement, a total of 88 countries covering 56% of global GHG emissions refer to carbon pricing in their submitted Nationally Determined Contributions.
  • There are Carbon Market Provisions in the Paris Agreement in Article 6.2: International Transferable Mitigation Outcomes (ITMOs) as well as references within Article 6.4’s work with Sustainable Development Mechanisms (SDG).
  • It is estimated that with full international trading for emissions reductions would result in:
    • -32% cost savings in emissions reductions under the Paris Agreement by 2030
    • -50% cost savings in emissions reductions under the Paris Agreement by 2030
Length
Press play to start the video (79m 38s)
https://vimeo.com/album/5480549
Video Outline
To skip ahead to a specific section go to the time indicated in parenthesis.

Intro and Agenda
(from beginning)

Carbon Pricing Around the World
(6:07)

Trends in Carbon Pricing
(19:22)

International Context
(37:37)

Q&A
(50:08)

Instructor(s)

Dominik Englert

Downloads

Download PowerPoint presentation.

Download the video.
Audio length
Press play to start the audio (79m 38s)
Audio embed code

Audio Outline
To skip ahead to a specific section go to the time indicated in parenthesis.

Intro and Agenda
(from beginning)

Carbon Pricing Around the World
(6:07)

Trends in Carbon Pricing
(19:22)

International Context
(37:37)

Q&A
(50:08)

Instructor(s)

Dominik Englert

Go Deeper

The Full World Bank Report: State and Trends of Carbon Pricing 2018

 

Discussion Topic
To Print
Instructions for printing this page on Community.
Category
Training
Topics
Climate Policy
Format
Audio / Video, Presentation
File Type
PowerPoint (.pptx)