An international carbon market could reduce climate mitigation costs by a third by 2030
An international carbon market could reduce the cost of climate change mitigation by 32% by 2030, according to the “State and Trends of Carbon Pricing 2016” report. Jointly prepared by the World Bank, Ecofys and Vivid Economics, the report was launched today at the 15th Assembly of the Partnership for Market Readiness in Hanoi, Vietnam.
The report, which is published annually, maps the global development of carbon pricing initiatives, and analyses key questions around the current and future state of carbon pricing. One of the analyses in this year’s report shows that an international carbon market could enable large-scale emissions reductions at much lower cost than at present, based on the carbon mitigation goals in countries’ national climate plans (INDCs) under the Paris Agreement.
2016 saw the launch of two new carbon pricing initiatives in British Columbia and Australia. Overall, momentum continued to grow with now 40 national jurisdictions and over 20 cities, states, and regions putting a price on carbon. The coverage of carbon pricing initiatives on global emissions has increased threefold over the past decade, translating to the equivalent of around 7 gigatons of carbon dioxide (GtCO2e), or about 13% of global GHG emissions.
This figure could grow from 13% to 20-25% of global GHG emissions next year if the Chinese national Emissions Trading System and further initiatives will be implemented in 2017 as announced. The Chinese ETS would then surpass the EU ETS as the largest carbon pricing initiative in the world.
Find additional insights in the World Bank press release.