Carbon Pricing – Leadership and Innovation

SPEAKERS

 
Kim Chan-woo
Ambassador for Climate Change, Deputy Minister for Foreign Affairs, Korea
 
Thembisile Majola
Deputy Minister of the Department of Energy, South Africa
 
Amar Bhattacharya
Senior Fellow, Brookings Institution
 
Sharan Burrow
General Secretary, International Trade Union Confederation (ITUC)
 
Patricia Espinosa
Executive Secretary, UNFCCC
 
Michael Yulkin
Head of Climate Change and GHG Management Working Group, Russian Union of Industrialists and Entrepreneurs (RSPP)

SESSION SUMMARY

GUIDING QUESTION:
How can we implement carbon pricing and trigger significant shifts towards climate investment and innovation?

The use of carbon pricing and market mechanisms is advancing worldwide, with schemes already in operation or scheduled at national and regional level. This session presents the approaches of different countries and will discuss how the generated income can be used sustainably.

A carbon price encourages emissions reductions as it internalizes the negative impacts and therefore increases the costs of pollution. High-carbon energy becomes more expensive and disadvantageous, therefore levelling the playing field for clean energy technologies. A strong, predictable and equitable carbon price can be achieved through direct carbon taxes or emission limits with tradable permits (i.e. cap-and-trade). It can be supported by reducing fossil fuel subsidies. Carbon pricing creates additional income streams for the state budget that can be used to finance further climate mitigation activities, to reduce distortionary taxation, and to advance other societal goals. By itself a carbon price is insufficient to achieve emission reductions across all sectors. It should therefore be complemented by a wide range of policy tools promoting the decarbonisation of the economy.