State and Trends of Carbon Pricing 2016

Published: 18/10/2016

Following the historical climate agreement adopted in Paris in 2015, carbon pricing will play an increasingly important role in the implementation of countries’ emission reduction commitments. About 100 Parties—accounting for 58% of global GHG emissions—plan or consider carbon pricing initiatives in their Intended Nationally Determined Contributions (INDCs).

The 2016 edition of the “State and Trends of Carbon Pricing” report shows that momentum on carbon pricing has continued to grow. About 40 national jurisdictions and over 20 cities, states, and regions are currently putting a price on carbon. This translates into a total coverage of around 7 gigatons of carbon dioxide equivalent (GtCO2e) or about 13% of global GHG emissions. The coverage of carbon pricing initiatives on global emissions has increased threefold over the past decade. 2016 also saw the launch of two new carbon pricing initiatives: in the Canadian province British Columbia and Australia.

The report also highlights the importance of the alignment of carbon pricing with other policies, and evaluates the benefits of an international carbon market, discusses ways to overcome barriers, and presents a potential transition scenario. The report was jointly prepared by the World Bank, Ecofys and Vivid Economics.

Find additional insights in the World Bank press release.

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