A growing number of business and government leaders support carbon pricing as the most effective way to incentivise low-carbon growth and cut greenhouse-gas emissions, says the World Bank.
The World Bank is now leading an international campaign calling on more countries, businesses and other organisations to express support for a universal carbon pricing commitment. It will present a statement, entitled Putting a price on carbon at the UN climate summit on 23 September demanding that more countries follow the 40 national and 20 sub-nation jurisdictions that have already implemented carbon-pricing schemes, or are in the process of doing so.
The bank argues that such arrangement help to reduces the costs of climate change and encourages investment in renewables and low carbon activities. It also says that businesses increasingly see carbon pricing as the most efficient and cost effective means of reducing emissions. Rachel Kyte, vice president for sustainable development at the bank, said: “A strong price signal in major economies is essential to establish the right incentives and to direct financial flows away from carbon-intensive growth to low-carbon investments.”
Governments, businesses, and organisations can express support for carbon pricing by adding their names to the statement ahead of the summit. The campaign is supported by the Prince of Wales’s corporate leaders group, the UN Global Compact, the International Emissions Trading Association, the World Economic Forum, the World Business Council on Sustainable Development, among others, and has the support already of more than 230 companies and nearly 30 governments.
The bank is also encouraging companies to support its business leadership criteria on carbon pricing by committing to set an internal carbon price, publically advocating the importance of carbon pricing through policy commitments and communicating progress in public corporate reports.
World leaders, from government, finance, business and civil society have been invited to the summit and set out their plans and ambitions to “reduce emissions, strengthen climate resilience, and mobilise political will for a meaningful legal agreement” ahead of the UN climate change conference next year.
