Global carbon pricing: The rocky road to an effective global response to climate change

Putting a price on carbon is the most (cost-)efficient policy instrument for directing private investment away from fossil fuel energy to climate-friendly alternatives and thereby set an economically sound and long-term framework for the the necessary clean energy transformation. The introduction of national carbon prices has recently gathered momentum around the world, although there is still great heterogeneity in the pricing levels and coverage of particular sectors. Implementing carbon prices remains a challenge particularly in emerging economies. Bilateral partnerships can have a strong leverage effect on climate policy if they motivate and empower other countries to implement national carbon pricing systems. The urgently needed global coordination of climate policy could then be achievable through a consensus on a minimum price of carbon that is supported by as many countries as possible. The G7 climate club could provide a suitable framework to step up action.

Global carbon pricing: The rocky road to an effective global response to climate change(PDF, 903 KB, accessible)