2021-2022年碳定价领导联盟报告（英）-碳定价领导联盟VIP专享VIP免费

下载本文档

阅读 200
格式 pdf
大小 2.19 MB
约49页
2023-04-18
收藏
点赞(0)
海报
举报

CARBON PRICING

LEADERSHIP REPORT

2021/22

This report was prepared by the Secretariat of the Carbon Pricing Leadership Coalition under

the leadership of Venkata Ramana Putti and Angela Churie Kallhauge. Jichong Wu managed

the project with support from Jeannette Ramirez, Pola Seongeun Shim, Shamini Selvaratnam,

and Go Mukai. It covers the period ending May 31, 2022.

Contributors

Alejandra Mazariegos (World Bank), Anna Boneta Herrero (Andorra), Anna Nakleskina (RUSAL),

Astrid Krizus (Canada), Barbara Baarsma (Rabo Carbon Bank), Cecile Bussy (Sweep), Cédric de Meeûs

(Holcim), Chris Leeds (Standard Chartered Bank), Claire Ong (CPLC Singapore), David Boey Meng-

Whye (Temasek), Dirk Forrester (International Trading and Emissions Association), Elizabeth Wilmott

(Microsoft), Gabriel Tan (CPLC Singapore), Gerard Mestrallet (Afalula), Gloria Kasang Bulus (Citizens’

Climate International), Helen Mountford (ClimateWorks Foundation), Jeroom Remmers (True Animal

Protein Price Coalition), Jessica Lam (Microsoft), Joe Robertson (Citizens’ Climate International),

John Hansen (Powerledger), Joseph Dixon Callisto Pryor (World Bank), Joseph Ibrahim (Citizens’

Climate International), Juan Carlos Jobet (former CPLC co-chair), Juan Pedro Searle (Chile), Judy

Meltzer (Canada), Justin Trudeau (Canada), Kazuhisa Koakutsu (Japan), Laurie Ristrino (Voluntary

Carbon Market Integrity Initiative), Liubov Yaroshenko (En+ Group), Lucie Aubeaux (Afalula), Mahendra

Singhi (Dalmia Cement), Malek Al-Chalabi (Shell), Mari Pangestu (World Bank), Marie Reynolds

(Unilever), Marijke Vermaak (Canada), Mauricio Cárdenas (Center on Global Energy Policy at Columbia

University), Michael Green (Climate Capital Advisors), Mischa Repmann (Swiss Re), Paula Vanlaningham

(S&P), Peter Schierl-Montfort (World Bank), Rachael Jonassen (The George Washington University),

Renaud Bettin (Sweep), Ryal Wun (CPLC Singapore), Samuel Jovan Okullo (World Bank), Sandhya

Srinivasan (World Bank), Sara Moarif (International Energy Agency), Shiv Rai (Microsoft), Shreya Sankar

(Mahindra), Simon Tudiver (Canada), Soﬁe Errendal (OECD), Tatjana Gojmerac (Citizens’ Climate

International), Vito Saluto (AMEA Power), Wang Zongyi (SinoCarbon)

1818 H Street NW, Washington, DC 20433

Telephone: +1-202-473-1000

Internet: www.worldbank.org

This work is a product of the sta of The World Bank with external contributions.

The ﬁndings, interpretations, and conclusions expressed in this work do not necessarily reﬂect

the views of The World Bank, its Board of Executive Directors, or the governments they represent.

The World Bank does not guarantee the accuracy of the data included in this work.

The boundaries, colors, denominations, and other information shown on any map in this

work do not imply any judgment on the part of The World Bank concerning the legal status

of any territory or the endorsement or acceptance of such boundaries. All amounts in $ are

United States dollars unless stated otherwise.

RIGHTS AND PERMISSIONS

The material in this work is subject to copyright. Because The World Bank encourages dissemination

of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as

long as full attribution to this work is given.

Attribution—Please cite the work as follows: World Bank, 2022. Carbon Pricing Leadership Report

2021/22. World Bank, Washington, DC.

All queries on rights and licenses should be addressed to the Publishing and Knowledge Division,

The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625;

email: pubrights@worldbank.org.

Editing and design by Clarity Global Strategic Communications (www.clarityglobal.net).

About this report

This annual Carbon Pricing Leadership Report complements the

Carbon Pricing Leadership Coalition’s advocacy and networking

activities by elevating the thinking of leaders in the mitigation arena

and sharing how partners across all sectors are putting a price on

carbon and engaging in carbon markets to reduce their emissions.

With less than a decade to go before the Paris Agreement’s 2030

deadline, collaboration and knowledge-sharing is more important

now than ever before. We hope this report will inspire decision-

makers from all sectors to commit to ambitious climate action

through carbon pricing in the years to come.

ABOUT THIS REPORT

The Carbon Pricing Leadership Coalion is a voluntary

iniave that brings together leaders from government,

business, civil society, and academia to enhance global

understanding of carbon pricing as a tool for accelerang

and nancing eecve climate acon.

/49

下载本文档

文本预览下载提示常见问题

CARBONPRICINGLEADERSHIPREPORT2021/22ThisreportwaspreparedbytheSecretariatoftheCarbonPricingLeadershipCoalitionundertheleadershipofVenkataRamanaPuttiandAngelaChurieKallhauge.JichongWumanagedtheprojectwithsupportfromJeannetteRamirez,PolaSeongeunShim,ShaminiSelvaratnam,andGoMukai.ItcoverstheperiodendingMay31,2022.ContributorsAlejandraMazariegos(WorldBank),AnnaBonetaHerrero(Andorra),AnnaNakleskina(RUSAL),AstridKrizus(Canada),BarbaraBaarsma(RaboCarbonBank),CecileBussy(Sweep),CédricdeMeeûs(Holcim),ChrisLeeds(StandardCharteredBank),ClaireOng(CPLCSingapore),DavidBoeyMeng-Whye(Temasek),DirkForrester(InternationalTradingandEmissionsAssociation),ElizabethWilmott(Microsoft),GabrielTan(CPLCSingapore),GerardMestrallet(Afalula),GloriaKasangBulus(Citizens’ClimateInternational),HelenMountford(ClimateWorksFoundation),JeroomRemmers(TrueAnimalProteinPriceCoalition),JessicaLam(Microsoft),JoeRobertson(Citizens’ClimateInternational),JohnHansen(Powerledger),JosephDixonCallistoPryor(WorldBank),JosephIbrahim(Citizens’ClimateInternational),JuanCarlosJobet(formerCPLCco-chair),JuanPedroSearle(Chile),JudyMeltzer(Canada),JustinTrudeau(Canada),KazuhisaKoakutsu(Japan),LaurieRistrino(VoluntaryCarbonMarketIntegrityInitiative),LiubovYaroshenko(En+Group),LucieAubeaux(Afalula),MahendraSinghi(DalmiaCement),MalekAl-Chalabi(Shell),MariPangestu(WorldBank),MarieReynolds(Unilever),MarijkeVermaak(Canada),MauricioCárdenas(CenteronGlobalEnergyPolicyatColumbiaUniversity),MichaelGreen(ClimateCapitalAdvisors),MischaRepmann(SwissRe),PaulaVanlaningham(S&P),PeterSchierl-Montfort(WorldBank),RachaelJonassen(TheGeorgeWashingtonUniversity),RenaudBettin(Sweep),RyalWun(CPLCSingapore),SamuelJovanOkullo(WorldBank),SandhyaSrinivasan(WorldBank),SaraMoarif(InternationalEnergyAgency),ShivRai(Microsoft),ShreyaSankar(Mahindra),SimonTudiver(Canada),SofieErrendal(OECD),TatjanaGojmerac(Citizens’ClimateInternational),VitoSaluto(AMEAPower),WangZongyi(SinoCarbon)©2022InternationalBankforReconstructionandDevelopment/TheWorldBank1818HStreetNW,Washington,DC20433Telephone:+1-202-473-1000Internet:www.worldbank.orgThisworkisaproductofthestaffofTheWorldBankwithexternalcontributions.Thefindings,interpretations,andconclusionsexpressedinthisworkdonotnecessarilyreflecttheviewsofTheWorldBank,itsBoardofExecutiveDirectors,orthegovernmentstheyrepresent.TheWorldBankdoesnotguaranteetheaccuracyofthedataincludedinthiswork.Theboundaries,colors,denominations,andotherinformationshownonanymapinthisworkdonotimplyanyjudgmentonthepartofTheWorldBankconcerningthelegalstatusofanyterritoryortheendorsementoracceptanceofsuchboundaries.Allamountsin$areUnitedStatesdollarsunlessstatedotherwise.RIGHTSANDPERMISSIONSThematerialinthisworkissubjecttocopyright.BecauseTheWorldBankencouragesdisseminationofitsknowledge,thisworkmaybereproduced,inwholeorinpart,fornoncommercialpurposesaslongasfullattributiontothisworkisgiven.Attribution—Pleasecitetheworkasfollows:WorldBank,2022.CarbonPricingLeadershipReport2021/22.WorldBank,Washington,DC.AllqueriesonrightsandlicensesshouldbeaddressedtothePublishingandKnowledgeDivision,TheWorldBank,1818HStreetNW,Washington,DC20433,USA;fax:202-522-2625;email:pubrights@worldbank.org.EditinganddesignbyClarityGlobalStrategicCommunications(www.clarityglobal.net).1AboutthisreportThisannualCarbonPricingLeadershipReportcomplementstheCarbonPricingLeadershipCoalition’sadvocacyandnetworkingactivitiesbyelevatingthethinkingofleadersinthemitigationarenaandsharinghowpartnersacrossallsectorsareputtingapriceoncarbonandengagingincarbonmarketstoreducetheiremissions.WithlessthanadecadetogobeforetheParisAgreement’s2030deadline,collaborationandknowledge-sharingismoreimportantnowthaneverbefore.Wehopethisreportwillinspiredecision-makersfromallsectorstocommittoambitiousclimateactionthroughcarbonpricingintheyearstocome.ABOUTTHISREPORTTheCarbonPricingLeadershipCoalitionisavoluntaryinitiativethatbringstogetherleadersfromgovernment,business,civilsociety,andacademiatoenhanceglobalunderstandingofcarbonpricingasatoolforacceleratingandfinancingeffectiveclimateaction.2Contents3Foreword5Carbonpricing:aglobalopportunity6Carbonpricingstillanimportantmitigationtoolastimerunsout8Mobilizingengagementincarbonpricingthroughgloballyaccessiblecarbonmarkets10ReportoftheTaskForceonNetZeroGoalsandCarbonPricing14GLOBALDEVELOPMENTSINCARBONPRICING15Article6breakthroughsimproveintegrityforcarbonmarketgrowth17GulfStatesmakefirmstridestowardsenteringcarbonmarkets18UNFCCCMENARegionalClimateWeek19Partnerupdates21PMIFprograms:supportingcountriesastheyentercarbonmarkets22Lowpricesarelimitingcarbonpricing’spotential24CORPORATELEADERSHIPINACTION25Surgeincarbonmarketsisdrivinginnovationintechnologiesandmethodologies26Newsfromthefrontiersofvoluntarycarbonmarkets27Promisingpartnerships,programs,andtechnologies29Ournextpriority:decarbonizingagri-food30Howcarbonpricingishelpingtheprivatesectorstrivefornetzero33Citizens’ClimateInternationalsupportsclimateincome34ABOUTTHECPLC35Muchtocelebrate,muchmoretobedone37Whoweare37Ourmission37Ourapproach38Ourpriorities38Ourleadersandteam38Advisorygroup39OtherprogramsunderthePartnershipforMarketImplementationFacility40Ouractivitiesin2021/2243OurpartnersCONTENTS3ForewordEvenastheworstofthepandemicstartstorecede,thewarinUkrainethreatenstoimpactglobaldevelopmentoutcomes.Atthesametime,climateimpactscontinuetomount.ThefindingsofthelatestIntergovernmentalPanelonClimateChange(IPCC)reportsprovideastarkwarning:wemustdecarbonizeoureconomiesatanacceleratedpaceandscaleandreachnetzeroemissionsby2050toavoidfundamentallyalteringourplanet’sclimateanditsirreversibleimpactsondevelopment.Wemusttakeboldandswiftactionandwemustdosonowtoensurethatwecanrealizegreen,resilient,andinclusivedevelopment.Thegoodnewsisthatwealreadyhavemanyofthetoolstofacilitateatransformativeshifttowardsanet-zerofuture—pricingcarbonchiefamongthem.Andwhilecoverageandpricelevelsarestilltoolow—lessthan4percentofglobalemissionsarecurrentlycoveredbyacarbonpricewithintherangeneededby2030tomeettheParisAgreementtemperaturegoals—thereareclear,positivesigns.Emissionstradingsystems(ETSs)werelargelyresilienttoreducedeconomicactivityasaresultofCOVID-19.Severalcountriesincreasedtheircarbontaxratesandadoptedmoreambitioustrajectories,andpilotETSsarebeingconsideredinanumberofcountries,includingnationalandregionalprograms.Aftersixyearsofnegotiations,COP26inGlasgowfinalizedthelong-awaitedArticle6oftheParisAgreementrulebookforinternationalcooperationthroughcarbonmarkets.Itgivescountriesthetoolstheyneedforenvironmentalintegritytoavoiddoublecountingandpavesthewaytogetprivatecapitalflowingtodevelopingcountries.Thefinalizationoftherulebookactsasaprimerforcarbonmarkets.Itholdsapromiseofdecisiveactionasmorecompaniesandgovernmentsambitiouslyexploreputtingapriceoncarbonthroughthemarkettoincentivizeclimateactionandachievetheirlong-termtargetofnet-zeroemissionsbymid-century.Thepasttwoyearsoftheglobalpandemicprofoundlyimpactedoursocietiesandeconomies.TheCOVIDcrisisheightenedtheneedformulti-lateralismtotackleglobalchallenges.MariPangestuManagingDirectorofDevelopmentPolicyandPartnerships,WorldBank4TheWorldBankGroupisuniquelypoisedtosupportclientstoprepare,plan,buildcapacity,andimplementcarbonpricingpoliciesandreachtheirnet-zerogoals.Lastyear,weoperationalizedthePartnershipforMarketImplementation,a10-yearprogramthatwillbuildonourearliereffortstoreadycountriesforcarbonpricing.WealsopublishedourClimateChangeActionPlan(CCAP)2021–2025,whichincludescarbonpricingasanintegraltooltoscaleuptransformationalclimatesolutions.TheCarbonPricingLeadershipCoalition(CPLC)isthemainvehicleforcountries,privatesector,andstakeholderstocollectivelysharetheirbestpracticesoncarbonpricingpolicies,disseminateessentialresearch,amplifyleadership,andinspireotherstofollowsuit.TheCPLChassetthestandardforconversationsoncarbonpricing—fromitsTaskForceonNetZeroGoalsandCarbonPricing,whichanalyzedtheeffectiverangeofthesepolicies,toitsmostrecentNetZeroGoalsandCarbonPricingReport,whichlaidouthowtoharnessthepotentialofcarbonpricinginimplementingstrategiestogettonet-zeroemissionsbymid-century.Ihavepersonallyenjoyedbeingpartofmanyoftheseconversationsbecausetheyhighlightnotonlyleadershipbutalsowhatgoeswrongandhowtolearnfromthat.Asministriesoffinance,planning,andtradeaswellascompaniesandindustriesstarttocalibratepoliciesforcarbonmarkets,theCPLCwillcontinuetoengagepartnersandsupportcountriestoplan,prepare,andscaleuptheseapproaches.IhopetheywillfindtheinsightsinthissixthleadershipreportfromCPLCvaluable—rangingfromdevelopmentsinthecarbonmarketstopromisingpolicies,tools,andtechnologies.FOREWORD“Asministriesoffinance,planning,andtradeaswellascompaniesandindustriesstarttocalibratepoliciesforcarbonmarkets,theCPLCwillcontinuetoengagepartnersandsupportcountriestoplan,prepare,andscaleuptheseapproaches.”5Carbonpricing:aglobalopportunityPuttingapriceoncarbonpollutioniswidelyrecognizedasthemostcosteffectivepolicytocutemissions.Andiftherewereanydoubtaboutthis,Canadaistheproof.Canadahashadcarbonpricinginplaceineveryjurisdictionsince2019.Sincethen,we’veseenfirst-handhowthispolicyhashelpedcutemissionswhileputtingmoneybackinpeople’spocketsandspurringinnovation.Wehavesetourcarbonpricetrajectoryallthewayto2030toprovidecertaintyforhouseholdsandbusinesses.Ourapproachtopricingisflexible,adaptable,andfocusedonprinciplesofequity.Weuserevenuestodirectlysupporthouseholdsinawaythatbenefitslow-incomeandvulnerablecommunitiesthemost.Wehavedifferentpricingsystemsindifferentpartsofthecountrythataretailoredtolocaleconomies.Wehavedesignedoursystemstodecarbonizeindustrieswhilealsosupportingtheircompetitivenessandlimitingtheriskofcarbonleakage.Pollutionpricingisdoable,itworks,andit’sworthfightingfor—notjustinCanadabutaroundtheworld.Afterall,climateactionisn’tsomethinganyonecountrycandoalone.That’swhyatCOP26,Ichallengedcountriestoadoptorexpandcarbonpricing,withagoaloftriplingglobalcoveragefromaround20percentofglobalgreenhousegas(GHG)emissionstodayto60percentby2030.Inthemonthssince,Ihavebeenheartenedtohearsupportforthisgoalfromleadersaroundtheworld.Countriesareworkingtogethertoalignpoliciesandcoordinateefforts,throughorganizationsliketheG7ClimateChangeMitigationWorkingGroup,theInternationalMonetaryFund,theOrganisationforEconomicCo-operationandDevelopment(OECD),andtheCarbonPricingLeadershipCoalition.ThroughinitiativesliketheWorldBank’sPartnershipforMarketImplementation,countriesaresharingbestpracticesandsupportingemergingsystems.Themomentumisthere.Solet’skeepgoing.Iamcallingongovernmentsandbusinessestomakenewcarbonpricingcommitments.Forthosealreadypricingpollution,itcouldbeacommitmenttohigherprices,expandedcoverage,ortechnicalsupportforemergingsystems.InCanada,ourpriceoncarbonpollutionwillriseto$170pertonneby2030.Forthosenotyetpricingpollution,itcouldbeapledgetoputasysteminplace.Canadawillbereadywithanewcommitmentofourowntohelpguaranteethefuturepriceofcarbonpollution,sothatbusinessescanplaninvestmentsknowingthatthepricewillincreaseasplanned.IspentthefirstsixyearsofmytimeasPrimeMinisterworkingforpollutionpricingathome.I’mreadytospendtheyearsaheadbringingthisworktotheworldstage.Climatechangeisadauntingchallengethatcanonlybemetbyfullydeployingourbest,mosteconomicallyefficienttools.Andthatmeansbackingaglobalefforttoensureitisnolongerfreetopolluteanywhere.THOUGHTLEADERSHIPIspentthefirstsixyearsofmymandateasPrimeMinisterfightingforapriceonpollutioninCanada.AndIdiditbecauseIknowhowmuchpollutionpricingmatters.Ourworldisfacingaclimatecrisis.Andcommitmentsalonearenotenough.Theymustbebackedupbystrongpoliciesandactionsthatdeliverrealresults.JustinTrudeauPrimeMinisterofCanada6CarbonpricingstillanimportantmitigationtoolastimerunsoutThisispreciselywhereapriceoncarboncanplayafundamentalrole,inotherwords,byacceleratingtheimplementationoftechnologiesandmeasuresthat,incombination,candrasticallyreducegreenhousegasemissionsandminimizetheimpactsofclimatechange,especiallyonthemostvulnerablepopulationsandthosewiththeleastresourcestoadapt.Weneedtobecarefulnottobeseenasusingcarbonpricingtosetabarriertodevelopingcountries,buttomakethecaseforwhyitcanhelp.Carbonpricingisbeingimplementedinseveralcountriesandjurisdictions.Itisworkingandisreducingemissions,butitneedstobecomemoreeffective,toreachmorecountries,andtobesufficientlyambitioustomeetthe2°Cgoal.Weneedtoincreasepricelevels.Itisthebestwaytoleveltheplayingfieldforcleanenergy,toincentivizeinnovation,andtogeneraterevenuestohelpthepoortonavigatetheclimatetransition.Whendesigningandadaptingacarbonpricinginstrumenttothejurisdictionalcontext,itisimportanttokeepinmindthepoliticaleconomyasitishardtopassthelegislationthatisrequiredwithoutconsideringthebroadersocioeconomiccontext.Becausecarbonpricingcanbecomplex,weneedtoexplainitinsimpletermstohelpoursocietiesunderstandwhywearedoingthis.Atthesametime,weneedtoacknowledgethatcarbonpricingisnotastand-alonepolicythatwillresolveeverypieceoftheclimatechangepuzzle.Itneedstobepartofabroaderclimatechangepolicypackage.Withthisinmind,Chiledesigneditscarbontaxinlinewithotherpublicpolicyinstruments,whilehavingafeaturethatmakesituniqueintheworld:a“downstream”taxoncarbondioxideemissionsandlocalpollutants,whichhasgeneratedtechnicalcapacityandinfrastructuretomeasure,report,andverifyemissions.Thiswillbeveryusefulwhenitcomestoimplementingmorecost-effectiveinstruments,ifitisdecidedtomoveforwardinthisdirection.However,therateofourtaxisundoubtedlylow.Weareawarethatitshouldbeatleast$35pertonby2030,andshouldincreasemuchmoreafterthatifwearetoreachourcarbonneutralitygoalbymid-century.Severeclimatechangeimpactsarealreadyhappening,accordingtothelatestIPCCreportonvulnerabilityandadaptation.Thereportisadreadfulwarningabouttheconsequencesofinaction.Itshowsthatclimatechangeisasevereandescalatingthreattoourwell-beingandthatoffuturegenerations.Italsoshowsthatouractionstodaywillshapehowpeopleadapttoclimatechangeandhownaturerespondstoincreasingclimaterisks.But,mostsignificantly,itunderscorestheurgencyofimmediateandmoreambitiousactiontoaddressclimaterisks.JuanCarlosJobetFormerCPLCco-chairTHOUGHTLEADERSHIP7Toacceleratethegreeningofoureconomy,whichincludesagrowinggreenhydrogenmarketandtheelectrificationofourindustry,weneedtoincreaseourcarbonprice.Buthowshouldwegettothispoint?Forinstance,wecouldincreasethecompetitivenessofrenewableenergiescomparedwithfossilfuelsbymakingthepriceofthelattertrulyreflectthenegativeimpactsoftheiruse.Tothisend,Chile’sMinistryofEnergyhasdevelopedaStrategyofEconomicInstrumentsfortheEnergyTransition,whichcontainsproposalstobalancethetaxburdenbetweenfossilfuels,modifythecarbontax,andintroducenewinstrumentssuchascap-and-tradeandmarketengagementintermsofArticle6.ThisstrategybecomesevenmorerelevantinthecontextofChile’srecentlyapprovedClimateChangeLaw,whichpromotestheimplementationofeconomicinstrumentsforministriestocomplywiththecommittedgoals,amongothers.Atthenationallevel,theworkaheadistoimplementthisstrategyandtoraiseawarenessoftheimportanceofanincreasingcarbonpricetrajectoryaspartofabroaderpackageofpoliciestoaddressclimatechange.Atthegloballevel,thesignificanceofcooperationbetweenpartiesmustberecognized,Article6oftheParisAgreementmustbefullyimplemented,andmoreandmorecountriesmustapplyacarbonprice.Here,theroleplayedbycarbonpricingadvocateswillcontinuetobefundamental.Assuch,CPLCshouldcontinuetoplayakeyroleinadvocatingforaglobalcarbonprice,nowshapedbythechallengeofoffsettingemissionswhileincreasingambitionovertime.Itshouldworkevenmorecloselywithallitspartnerstopushforharmonizedeffortsacrosstheworldtoexpediteclimateactionthatisambitiousandundertakenwithintegrity.Thecomingdecadewillbekeyinthefightagainstclimatechange.Timeisrunningout!THOUGHTLEADERSHIP“CPLCshouldcontinuetoplayakeyroleinadvocatingforaglobalcarbonprice,nowshapedbythechallengeofoffsettingemissionswhileincreasingambitionovertime.”8MobilizingengagementincarbonpricingthroughgloballyaccessiblecarbonmarketsTheclimatecrisisisareminderthattheworldcannotaffordtocontinuewithabusiness-as-usualapproach.Thereisanurgentneedtobuildresilienceagainstalltheinterconnectedcrisesourplanetfaces,thebiggestofallbeingtheclimateemergency.Appropriatecarbonpricingmechanismscanenhancetheefficiencyoftheglobalsystemaswellasnationaleconomies,ifimplementedjustlyandequitably.Well-designedandpredictablecarbonpricingreformsareinthebestinterestsofdevelopingandemergingcountries.Theycanpromotetheadoptionofcleantechnologiesand,ultimately,bringaboutasustainableeconomictransition.Globalcarbonmarketsareontracktobecomeexcellenttoolstoachievedeepdecarbonizationatthelowestpossiblecost.Therightaccountingmechanismsarecrucialforassessingreal,measurable,andlong-termreductions,andforimprovingdevelopingcountries’abilitytobenefitfromthedecarbonizingglobaleconomy.Sellingemissionsreductionsonglobalcarbonmarketsisanattractiveoptionfordevelopingcountrieswhosebasicenergyinfrastructureisstillbeingdeveloped.Theseglobalcarbonmarketsshouldmakecarbontradingavailabletoall,attransactioncoststhatareaslowaspossibletoencourageindividualaccesstocarbonmarkets.Anintegratedglobalcarbonmarketnotonlylevelstheplayingfieldamongcompetitorsbutalsoamongalleconomicplayers.Itthereforepromotesanequitabletransition.Therevenuesaccruedfromdecarbonizationcreditscanbeusedtofundthedevelopmentandrolloutofambitious,scalablegreentechnologiesindevelopingcountries,whilefundingsocialprotectionsforthosepopulationsmostaffectedbythedecarbonizationtransition.Globalcarbonmarketscanhelpcountriesandbusinessesachievenet-zerogoalsandlimitthenegativeeffectsofclimatechange.Duringthepastfewyears,industryhasdemonstratedanadmirablecommitmenttobecomingnetzero.BusinessesaredeliveringontheirresponsibilitytokeeptheworldinasafeTHOUGHTLEADERSHIPTheIPCC’sspecialreport,GlobalWarmingof1.5°C,providedbusinessesandgovernmentswithaclearultimatum:eitheracceleratescalabletransformationsforkeepingtheworldwithinatemperatureincreaseof1.5°Cabovepreindustriallevels,orfailpeopleandtheplanet.Nowisthetimetobringpeopletogethertodiscussandshareinformationoncarbonpricingwitheconomiesofdevelopingcountries.MahendraSinghiManagingDirectorandCEOofDalmiaCement9operatingspacebycreatinggreenjobs,drivingsustainablegrowth,andbuildingclimateresilienceinsociety.Corporateactiononthecirculareconomy,resourcesandenergyefficiency,andrenewableenergydeploymenthasbeenontherise.Evenbusinessesindevelopingcountriesaremakingambitiousnet-zerocarboncommitments.Despitetheseachievements,carbonpricingisacomplicatedsubject,requiringexecutives,boards,andpolicymakerstodisplayadeepunderstandingofthetoolsandpoliciesrequiredtoreaptheemission-reductionbenefitsofthisapproach.TheCPLC’seffortstofacilitatesharingofinformationandbestpracticesacrosssectorsandbordersplaysanimportantroleinthesuccessofthisclimatetool.Businessesindevelopingcountriesoftenfaceobstaclestocorporateclimateaction.Theseincludeunstablepolicylandscapes,lackofdemandforlow-carbonproductsandservices,andlackofgreengrantsofproject-basedriskfinance.Moreover,emissions-reducingtechnologiessuchasgreenhydrogenandcarboncapturearestillatthestartoftheirjourney.Global,regional,andlocalpartnershipscouldhelpsharetheresponsibilityofovercomingtheseobstacles.Eventhoughmanylargecompanieshavetakenstepstoreducetheiremissions,wehaveyettobringsmallandmedium-sizedenterprises(SME)onboard.Thereisasharedresponsibilitytohelpthesecompaniesaligntheirdecision-makingapproaches,governancestructures,andstrategieswiththebestavailableclimatescience.Inthe2000s,theCleanDevelopmentMechanismplayedanimportantroleinenlistingSMEsinclimateaction.Similarly,Article6oftheParisAgreementofferstheworldausefulgreatfordevelopingglobalcarbonpricingaccessthroughcarbonmarketsforajust,equitable,real,andmeasurablenet-zeroeconomytransition.Carbonpricingisthemostefficienttooltoacceleratethetransitiontowardtoalow-carbonsociety.Abroadercoverageofcarbonpricingsystemsshouldstimulatetheglobaltransition,providedthecurrentgapbetweenhighETScarbonpricesinEuropeandcarbonpricesinothermarketsdoesnotincreasebeyondpresentlevels.Inaddition,thecurrenthighoilandgaspricesoninternationalanddomesticmarkets—inspiteoftheirnegativeimpactonconsumers—representsanopportunitytointroduceormaintainsignificantcarbonpriceswhenthesupply/demandbalancerecoversamorestandardizedlevel.”GérardMestralletExecutiveChairmanofAfalulaandformerCPLCHigh-LevelAssemblyco-chair“10CPLCRESEARCHReportoftheTaskForceonNetZeroGoalsandCarbonPricingTheCPLCTaskForceonNetZeroGoalsandCarbonPricingpublisheditsfindingsinSeptember2021.Thereportcontributestoadeeper,commonunderstandingofwhat“netzero”means,howitcanbeachieved,andtherolecarbonpricingmechanismscanplayinachievingit.Herearethekeyfindingsfromthereport.TheTaskForceonNetZeroGoalsandCarbonPricingwaslaunchedinNovember2020undertheleadershipofco-chairsHelenMountford,PresidentandCEOofClimateWorksFoundationandaformerCPLCSteeringCommitteeco-chair,andMauricioCárdenas,anacademicwiththeCenteronGlobalEnergyPolicyatColumbiaUniversity.Thegoal:tobetterunderstandwhat“netzero”meansfordifferentcountriesandcontexts,andhowcarbonpricingcancontributetoachievingthisgoaloverthenext10to15years.Thetaskforcefocusedonunderstandinghownationalgovernmentsandtheprivatesector,includingfinance,interpretedthisgoalintheircommitmentsandactivitieswithinagreatercontextofincreasingglobalclimatechangeambition.“Awelcomewaveofcountries,companies,cities,andfinanceinstitutionscameforwardwithnetzeroclimatecommitmentsin2021.Thisreportiscriticalinhelpingidentifytheconditionstoensurethecommitmentsarescientificallyrobust,andbenefitpeopleandcommunities.”HelenMountfordPresidentandCEOofClimateWorksFoundation“Carbonpricingmaynotbeasilverbullet,butitwouldcertainlyhelptransformclimatepledgesintorealreductionsincarbonemissions.Furthermore,corporationsshouldadopttheirowninternalcarbonpriceswhengovernmentsfailtoact.”MauricioCárdenasColumbiaUniversity11CPLCRESEARCHNetzeroisthepointwherehuman-causedgreenhousegas(GHG)emissionsarereducedtotheabsoluteminimumlevelsfeasible,and“residualemissions”arebalancedbyanequivalentquantityofhuman-causedremovals(seeFigure1).Keymessage1Netzeroinvolvesfirstcuttingemissionstoaminimum,thenseeking(permanent)removalsGLOBALTRANSITIONtoNETZEROANDTHEROLEofREMOVALSEmissions02010202020302040205020602070NetNegativeEmissionsBusinessasUsualNetEmissionsTrajectoryRemovalsActualEmissionsNetZeroEmissionsReductionsGLOBALTRANSITIONTONETZEROANDTHEROLEOFREMOVALSFIGURE1:GLOBALTRANSITIONTONETZEROANDTHEROLEOFREMOVALS.Source:ReportoftheTaskForceonNetZeroGoalsandCarbonPricing,2021Despitearamp-upinbothgovernmentandcorporatecommitmentsinrecentyears,theworldisnotontrackfornetzeroby2050.Currentcarbonpricesaretoolowtodrivesufficientprogress:lessthan4percentofglobalGHGemissionsarecoveredbyacarbonpriceintherangeneededtomeetthe2°CgoaloftheParisAgreement,or$40to$80pertonofCO2.Thescaleandurgencyofemissionreductionsneededbybothcountriesandtheprivatesectormeanthatwecannolongertakeactioninapiecemealfashionoronlywhereemissionsreductionsarelow-cost.Instead,wemustreduceallemissionscomprehensivelyandasquicklyandefficientlyaspossible.Keymessage2Theworldisnotontracktoachievenetzeroby2050Carbonpricing,includinginternationalcooperationthroughcarbonmarkets,shouldbeincludedinthearsenalofmeasurestoenabletheachievementtonetzerotargets.Carbonpricesshouldbehighenoughtoprovideeffectivesignalstosociety,andtodrivelevelsofinvestmentandtechnologicalchangenecessarytoreachnetzero.Theyshouldactinconjunctionwithcomplementarypolicyactionstomakecarbonpricingrelevantacrosscompanyvaluechains.Thiscanbeachievedbyexpandingpricingmechanismsandcoordinationacrosscountriestocoverahigherproportionofglobalemissions.Keymessage3Carbonpricingisanimportantmitigationtool,butitisn’tasilverbullet12Internationalcarbonmarketsmustincreaseambitionandleverageinvestment,ratherthanbeingusedsolelytoreducecosts.Keymessage4CarbonmarketsareintendedasatoolforclimateactionandtoleverageinvestmentAscountriesworktowardsnetzeroandemissionsareaggressivelyabated,theuseofemissionreductioncreditsmustnecessarilydecrease.Onlyhigh-qualityremovalcreditsshouldbeusedtobalanceresidualemissionsatnetzeroandbeyond.However,high-qualityemissionreductioncreditscanprovideanimportantflowofcapitaltoaccelerateactiononthepathtonetzeroandprogresstowardsemissionreductionsnow.Keymessage5High-qualitycarboncreditsarecrucialforlong-termemissionsreductionCPLCRESEARCHCorporateachievementofnetzerooccurswhenvaluechainemissionshavebeenabatedtothemaximumextentpossibleandtheremainingresidualemissionsneutralizedbyanequivalentquantityofremovals.Keymessage6CorporatenetzerocommitmentsshouldincludevaluechainemissionsNetzerocriteriashouldbeintegratedintoallinvestmentdecisions,includingthosebydevelopmentfinanceinstitutions,tosupportrapiddecarbonizationacrossalleconomicsectors,takingintoaccountthenationalcircumstanceofindividualcountries.Keymessage7NetzeroshouldbeintegratedintoallinvestmentdecisionsWhetherimplementedbycountriesorbytheprivatesector,netzerostrategiesshouldsupportsociallyfairandjusttransitionsacrossallregionstobesuccessful.Governmentsandcompaniesshouldrespecthumanrightsandmakesurethatnetzerostrategiesalignwithdevelopmentobjectives,promotejobs,andensureafairdistributionofcostsandbenefits,particularlywithregardtovulnerableandindigenouspopulations.Keymessage8ThepathtonetzeroshouldbesociallyfairandjustMoreover,itwillfostersectoralmainstreamingandidentifyopportunitiesforgainsfromalignmentandcollaborationneededtoachievetrulysystemicchangeatthepaceandscalerequired.Keymessage9Thecredibilityofambitionandstakeholderengagementinnetzerodevelopmentandimplementationprocessesdependontransparentnetzerotargets13Transparencyineffortsandseparatetargetsforemissionreductionsandremovalsalongthetrajectorytonetzeroatalllevels,ratherthansolelynetemissiontargets,wouldpromoteaccountabilityandmayhelpprioritizeemissionabatement.Keymessage10Transparency,cleartargets,andaccountabilityarekeyTobecredibleandtogainandmaintainpublicacceptance,allcarbonmarketinstrumentsneedtooperatewithinacleartrajectorytonetzeroandapplyrobustaccountingrulestoensuretheavoidanceofdoublecounting.Companiesmustrobustlyaccountforcreditsandmitigationcontributionsand,wherepossible,trackanddisclosewherecreditsaresourced.Keymessage11CompaniesshoulduserobustaccountingrulesCPLCRESEARCHIfacompanyusesinternationalcreditsforcompliancepurposes,itmustensurethatthereductionsorremovalsarenotdoublecounted.CompaniesshouldnotuseinternationalcreditswithoutacorrespondingadjustmentinthehostcountryifthatcreditisaccountedtowardtheNDCofanothercountry.Keymessage12CompaniesshouldactivelyavoiddoublecountingAllcountries,sectors,andcompaniesneedtoparticipateinthe“racetozero”,butnotallcountrieswillachievenetzeroatthesametime.Duetotheircapabilitiesandhistoricemissionlevels,advancedcountries,inparticular,mustreachnetzeroasquicklyaspossible.Developingandemergingcountriesmayneedtotakeaslowerpaceduetoinstitutionalorcapacitylimitationsordevelopmentneeds.Still,theyshouldalsostrivetoachievenetzeroasquicklyaspossible.Keymessage13Developingcountriesmayneedtotakelongertoachievenetzero—CPLCSECRETARIAT14GLOBALDEVELOPMENTSINCARBONPRICING15Article6breakthroughsimproveintegrityforcarbonmarketgrowthRecentglobalpoliticaldevelopmentsaredrivingasharedinterestinacceleratingtheenergytransition.Businessesandgovernmentsarealigningtheiragendasforenergysecurity,climateresilience,andajusttransition.Onerealityisclear:nobodycandoitalone.Thechallengesarejusttoobig.Butifweworktogether,anythingispossible.Thescaleofthischallengerequiresustoworktogetheracrossborders,sectorsandcommunities.Forbusinessesandnationscommittedtonetzerogoals,Article6willbeessential.Thatisbecauseitprovidesachannelforworkingtogetherwithintegrity—sothatwecanachievethescaleoftransformationthatisrequired.ThankstothebreakthroughsatCOP26inGlasgow,wehaveclarityonseveralintegritymeasuresatUnitedNationsandnationallevels:¦Countrieswillmakecorrespondingadjustmentsfornettransfersbetweenthem,whetherinlinkedtradingmarkets(Article6.2)orinproject-basedmechanisms(Article6.4).¦AnewsupervisorybodywilloverseetheArticle6.4emissionreductionmechanism.Thisbodyhasthetoolstodeliverahigh-qualitycreditingsystemthatusesnew,morerigorousbaselinesplusan“overallmitigationinglobalemissions”.¦ThenewArticle6architectureallowsflexibilityforcountriestousemandatorycarbontradingorpricingprograms—andtobuttressthemwithvoluntarymarkets.¦Thosecountrieswhoseeadvantageinworkingtogetheronnon-marketapproacheswillbenefitfromaworkprogramtoidentifyevenmorewaysofworkingtogether.In2022,governmentsshouldstarttosetuptheirplansforArticle6cooperation.Manywillneedtoadoptlegislativeandregulatoryframeworks,settingouttheinstitutionalarrangementsfortrackingandauthorizingtransfersofemissionscredits.TheywillneedtosetclearpoliciestoreduceemissionsfortheirNDCs,andtoidentifywhatadditionalemissionsreductionscouldbeauthorizedfortransferforusebyanothercountryorpurpose.CountrieswillnotbeabletodeliverthefullpotentialofArticle6alone.Allofusinthebusiness,financialandenvironmentalcommunitieswillneedtojoinintheeffort.Thatiswhynewprivateinitiatives,suchastheIntegrityCounciloftheVoluntaryCarbonMarkets,willbesovaluableinbuildingpublicandinvestorconfidenceinnewmarketapproaches.Bybuildingnewmarketsonhighintegrity,wecanbeconfidentthatthescalewillfollow.OPINIONKeptapartbyaglobalpandemicin2020and2021,theclimatecommunitycametogetherforasuccessatCOP26inGlasgow.Weleftenergizedtoreturntothemissionofbuildingstrongermarketsforclimateprotection—whichthevisionariesofCPLChavesoughtforyears.DirkForresterCEOandPresidentofInternationalTradingEmissionsAssociation16ARTICLE6OVERVIEWGLASGOWCLIMATEPACTPAVESWAYFORARTICLE6ROLLOUTOnNovember13,2021,worldleadersatCOP26adoptedtheGlasgowClimatePact,asuiteofdecisionsthatincludesclearaccountingguidancefortradingemissionsbetweencountriesasenvisagedbyArticle6.Article6makesprovisionforcountriestouseemissionstradingto“cooperativelyimplement”theirgreenhousegasreductionobligationsundertheParisAgreement.However,consensusontherulestoguidesuchtradingremainedelusiveformanyyears,restrictingArticle6’spotentialtobothgeneraterevenuefordevelopingcountriesthroughemissionstradinganddeliverhigherclimateambitions.TheGlasgowClimatePactsetsouttherulesnecessaryforarobust,transparent,andaccountablecarbonmarketandtocreatefinancialflowsfromdevelopedtodevelopingcountries.Inadditiontoestablishinganewmechanismforcarbonmarketsthroughwhichtheprivatesectorcanchannelgreeninvestment,thePactspecifiedthat:¦Correspondingadjustmentswillensurenodouble-countingofunitsinbothArticle6.2andArticle6.4mechanisms.¦Certifiedemissionreductionsproducedbetween2013and2020maybeusedagainstcountries’firstnationallydeterminedcontribution.ThisallowsforalimitedsupplyofunitsfromtheCleanDevelopmentMechanismtobecarriedover,somaintainingtheflowoffinancetodevelopingnationsuntilthenewmechanismisupandrunning.¦ToassuretheoverallmitigationinglobalemissionsfromtheArticle6.4mechanism,a2percentdiscountwillbecanceledfromissuancesfromthatmechanism.However,thiswasnotappliedtoArticle6.2marketlinkages.¦Negotiatorsagreedonarateof5percentfortheShareofProceedsforadaptation,tobetakenfromissuancesinthenewArticle6.4emissionscreditingprogram.However,nofixedratewillapplytoArticle6.2transactions.Instead,countriesusingArticle6.2areencouragedtocontributevoluntarilytotheAdaptationFund.ThePactalsoencouragesnon-marketapproachesthroughthecreationoftheGlasgowCommitteeonNon-MarketApproaches.17GLOBALDEVELOPMENTSINCARBONPRICINGGulfStatesmakefirmstridestowardsenteringcarbonmarketsGulfStates,whoseeconomieshavehistoricallybeenhighlyreliantonfossilfuels,havesignaledtheirinterestintransitioningtonetzerocarbon.InOctober2021,theUnitedArabEmiratesbecamethefirstcountrytoannounceitscommitmenttoachievenetzeroby2050.ThiswassoonfollowedbySaudiArabia,Oman,andBahrain(targeting2060).Qataraimstoreducegreenhousegasemissionsby25percentby2030,andIraqhascommittedtoemissionsreductionsofbetween1and2percent.Thesecommitmentsarepairedwithagrowinginterestinenteringglobalcarbonmarketsasawaytooffsetthepredictedreductioninincomeduetofossilfuelexportsfromtheregion.Tothisend,SaudiArabia’sPublicInvestmentFundandtheSaudiTadawulGroup,whichownstheSaudiExchange,haslaunchedtheRiyadhVoluntaryExchangePlatformforthetradeofverified,approved,andhigh-qualitycarbonoffsetsandcreditsproducedintheMENAregion.ThefinalizationofArticle6inGlasgowafewmonthslaterformallyopenedthedoorforcarbonmarketstoberolledoutmorebroadly.TheMiddleEastandNorthAfricaregionisnowwellpositionedtousemarketmeasurestodeploynewandemergingtechnologiestomanageemissionswhilestillconsumingfossilfuelsintheforeseeablefuture.Someexpertsnotethatthereisamultibillion-dollaruntappedmarketopportunityintheregiontoreallybenefitfromcarbonpricingpoliciesandmeasures,whichcanbepartiallydeliveredbycarboncapturestorageandutilization,renewableenergy,andlowcarbonhydrogenmegaprojectsdeployedintheregion.Tosupportthefurtheruptakeofcarbonpricingandmarketsintheregion,CPLCco-hostedtwosessionsfortheUnitedNationsFrameworkConventiononClimateChange(UNFCCC)MENARegionalClimateWeek,thefirstclimateweektobeheldintheregion,inMarch2022.Aneventco-hostedwithInternationalEmissionsTradingAssociation(IETA)discussedthemessuchasthechallengesandopportunitiesthatstakeholdersintheMENAregion,includingprivatesectorstakeholders,mightfacetounlockthepotentialforcarbonpricingandmarkets.AnAffiliatedEventco-hostedwithAEONStrategyandEU-GCCCleanEnergyTechnologyNetworkhighlightedthatMENAcompaniesarelookingtocarboncreditstomeettheirvoluntarydecarbonisationtargets,andinternationalcooperationandgovernmentsupportareneededtofullyharnessthepotentialofmarketmechanismsindeliveringcost-effectivecarbonreductionsandremovals,andincreaseclimateactionambitionintheregion.Goingforward,MENAwillremainintheinternationalspotlightasEgypthostsC0P27in2022andtheUnitedArabEmirateshostCOP28.AgreementonArticle6isencouragingfurtherinterestincarbonmarketsintheMiddleEastandNorthAfrica(MENA)region.—CPLCSECRETARIAT18GALLERYUNFCCCMENARegionalClimateWeekInMarch2022,theUNFCCChostedthefirstRegionalClimateWeektobeheldintheMiddleEastandNorthAfricaregion(MENACW2022),picturedonthispage.TheCPLCsupportedtheUNFCCCinplanninganddeliveringanAffiliatedEventoncarbonpricingatMENACW2022.Fromlefttoright:KishorRajhansa(GlobalCarbonCouncil);PerumalArumugam(UNFCCC);AnaHaurie(RespiraInternational);AndreaBonzanni(InternationalEmissionsTradingAssociation);and,joiningvirtually,PrincessMashaelAlShalan(AEONStrategy)inadiscussiononthepotentialofcarbonpricingforreducingemissionsinafinanciallyviableway.TheMENAClimateWeekclosingceremony.19PartnerUpdatesNewCPLCpartnerAndorrachannelscarbonpricingrevenuesintolocalGreenFundThehigh-lyingcountryofAndorraisalreadyexperiencingtheeffectsofclimatechangeonitsecosystems,people,andeconomicactivities.Eventhoughthecountryemitsonly0.001percentofglobalemissions,itscommitmenttoclimateactionisfirmandincreasinglyurgent.Andorra’scommitmenttoachievingcarbonnet-zeroby2050isbackedbyanewlyformednationalGreenFund,whichwilluserevenuesfromacarbonpricing—setat€30(about$28)perton—toprovideuniversalaccesstopublictransportandimproveenergyefficiencyinbuildings,amongotherinitiatives.InadditiontotheGreenFund,avoluntarynationalcarboncreditmarkethasbeencreated,withnationaloffsetprojectstohelppublicandprivatestakeholderstakeownershipofAndorra’sclimateaction.GlasgowDeclarationonCarbonPricingintheAmericaslaunchedTheGlasgowDeclarationonCarbonPricingintheAmericaswaslaunchedataCOP26sideeventinNovember2021andcallsonallcountries,bothintheAmericasandbeyond,topartnerwiththeCarbonPricingintheAmericasplatformin“designing,implementing,operatingandlinkingcarbonpricinginstrumentsandMRV[monitoring,reporting,andverification]systemsinordertomaximizeclimateaction[and]encouragerealprogressinreducingGHGemissions”.TheCarbonPricingintheAmericasplatformisco-chairedbyCPLCpartnersQuébecandChile.JapanoffersmodelforArticle6rolloutJapan’sJointCreditingMechanism,startedin2013,isapioneeringbilateralmechanismthatseesthecountryrolloutdecarbonizingtechnologiesthroughmorethan200projectsin17partnercountries,withtheaimofachievingitsemissionsreductiontargetsandcontributingtosustainabledevelopment.ThisexperienceleavesthecountrywellpositionedtoleadtheglobalimplementationofArticle6.AfterCOP26,Japan’sMinistryoftheEnvironmentannouncedthatitwill:¦ExpandthenumberofpartnercountriesintheJointCreditingMechanismandstrengthenprojectdevelopmentandimplementation,incollaborationwithinternationalorganizations.¦Scaleupthemechanismbymobilizingfurtherprivatefinance.¦Supportglobalcapacity-buildingfortheimplementationoftheArticle6.Japanhasalreadyimplementedvariousmarket-basedmeasures,includingataxforclimatechangemitigation,adomesticcreditingmechanism,andETSsimplementedattheprovinciallevel.Thecountryisnowconsideringcarbonpricingatthenationallevel,includingacarbontax,emissionstrading,andvoluntarycredittrading.JapanClimateLeaders’PartnershipurgesJapanesePrimeMinistertoinclude1.5°Ctargetsinhis“NewCapitalism”vision“NewCapitalism”isPrimeMinisterFumioKishida’svisiontoachieveacapitalismthatwillcreateavirtuouscycleofeconomicgrowthanddistribution.TheJapanClimateLeaders’Partnership(JCLP)—acoalitionofbusinessesthataimstocreateazero-carbonsociety—submittedastatementtotheprimeministerinperson,urginghimtoensurethatthedesignbeingdevelopedtosupportthisvisionincludesa1.5°Ctarget,enablesfasterexpansionofrenewableenergy,andintroducesacarbontaxoremissionstradingsystem.Theserequestswillbepasseddownfromtheprimeminister’sofficetothevariousministriestoo.GLOBALDEVELOPMENTSINCARBONPRICINGOurgovernmental,intergovernmental,andconsultancypartnerscontinuedusingcarbonpricingtopursuetheirclimateambitionswhileaddingtotheknowledgebaseanddefiningbestpracticeincarbonpricingpolicy.20Inrecognitionofitsexpertise,KahoriMiyake,JCLP’sco-chair,wasappointedtotheUnitedNationsSecretaryGeneral’sHigh-LevelExpertGroupontheNet-ZeroEmissionsCommitmentsofNonstateEntitiesinMarch2022.Theexpertgroupistaskedwithdevelopingstronger,clearerstandardsfornet-zeroemissionspledgesbynon-stateactors.SinoCarbonpublishes2021ChinaCarbonPricingSurveyinpartnershipwithICFThe2021ChinaCarbonPricingSurveyfoundthatfuturecarbonpricingisexpectedtorisesignificantlywiththeadvancementofChina’sdualcarbonpolicy.Thesurveyreceived417responsesfromprofessionalsacrossarangeofsectors,overhalf(58percent)ofwhichwereeitheralreadycoveredbythenationalorregionalemissionstradingsystems,orexpectedtobecoveredbythenationalsystem.Afurther18percentofsurveyresponseswerefromindustryrepresentativesthatwereeitherunsureordidnotexpecttobecoveredbythenationalcarbonmarket,and5percentwerefromsectoralassociations,bringingthecollectiverepresentationofindustryviewsto81percent(338responses).OECDcontributestoresearchontheeffectofCOVID-19oncarbonpricingpolicy,publishedEffectiveCarbonRates2021,andstarteddevelopinganInclusiveFrameworkonCarbonMitigationApproachesTheOECD’sG7CarbonMarketPlatform(CMP)enhancesinternationalcooperationamongcountriesandorganisationsbydevelopingambitious,effective,andsustainablecarbonpricingpolicies.In2021,theCMPconductedastudyintohowCOVID-19affectedcarbonpricingpolicies.Amongotherilluminatingfindings,thestudyfoundthatCOVID-19didnotderailtheimplementationofalreadyplannedcarbonpricingschemes,andthatgovernments’havemainlyreactedtothepandemicbyimplementingcarbonpricingpoliciesthatexacerbateclimatechange,despitethesebeingtime-limitedpolicychanges.In2022,theCMPwillfocusontheroleofcarbonpricingintransformationalchange.Carbonpricinghasproventoencouragereductions;however,itsroleintransformationalchangeisunclear.EffectiveCarbonRates2021providesadetailed,comprehensiveanalysisofthecarbonpricesignalresultingfromexcisetaxesonfuels,carbontaxes,andemissionstradingsystemsinOECDandG20countries,whicharecollectivelyresponsibleforabout80percentofGHGemissions.The2021reportfoundthatalthoughsomecountriessignificantlyimprovedcarbonpricinglevels,about60percentofemissionsacrosstheexaminedcountrieswascompletelyunpriced.TheOECDisalsodevelopinganewInclusiveFrameworkonCarbonMitigationApproaches(IFCMA)thatseekstoengageinmultilateraldialoguetosupportthedesignofeffectivepoliciesandfacilitategreaterinternationalambitionwhileavoidingnegativespillovers.Thisframeworkwillbeopentoallcountriesonanequalfooting,complementingexistinginternationalinitiativesbycontributingnoveldata,analysis,andmethodstocomparediversepolicyapproaches,includingbothpricingpoliciesandnon-pricingpoliciesthatgenerateimplicitprices.CanadareiteratescommitmenttocarbonpricinginnewemissionsreductionplanCarbonpricinghasbeenakeypillarofCanada’sclimateplanssince2016,andwasonceagainacentralelementinits2030EmissionsReductionPlan,releasedinMarch2022.Canada’sapproachtocarbonpricingensuresthatpricingappliesacrossthecountry,whilegivingflexibilitytoprovincesandterritoriestoimplementsystemstailoredtotheirlocalcontext.Thefederalgovernmentsetsminimumstringencycriteriathatallthesystemsmustmeet.Thesecriteriahavebeenstrengthenedforthe2023to2030period,includingspecifyingminimumcommonscopeandacarbonpricetrajectorythatwillreachCan$170($135)pertonofcarbondioxideequivalent(/tCO2e)by2030,fromthe2022levelofCan$50/tCO2e($40/tCO2e).Canadahassetoneofthemostambitiouscarbonpricetrajectoriesintheworldandisoneoftheonlycountriestohaveannouncedacarbonpricefor2030,sendingastrongsignaltodrivelow-carboninvestment.InternationalEnergyAgencyanalysishelpscountriesunderstandtheimplicationsofcarbonpricingpoliciesontheirenergysectorsTheInternationalEnergyAgency(IEA)usescountry-specifictechnicalanalysiscombinedwithbroadinternationalexpertisetobuildunderstandingofcarbonpricingamongstnationalauthoritieschargedwithimplementation.Duringtheyear,itconductedmodellingexercisestodeterminetheeffectcarbonpricingmighthaveonthepowersectorforChinaandThailand.ForSouthAfrica,theIEAundertookananalysisofcarbontaximplementation,whileinBraziltheagencyhelpedtoorganizetechnicaldiscussionstosupportplansforapowersectorETS.GLOBALDEVELOPMENTSINCARBONPRICING21PMIFprograms:supportingcountriesastheyentercarbonmarketsPartnershipforMarketImplementationlaunchedworkprogramforsub-SaharanAfricaandLatinAmericaThePartnershipforMarketImplementation(PMI)supportscapacitybuildingandimplementationsupportforcarbonpricing.Followingthesuccessfuldecade-longrunofthePartnershipforMarketReadiness,whichhelpedcreatedomesticcapacityandinfrastructureinover20countriestoimplementcarbonpricingasamitigationoption,thePMIwaslaunchedin2021toassistcountriesoperationalizingcarbonpricingandmarketinstruments.Withatargetofcoveringover30countriesby2025,thePMIispoisedtobeanimportantcontributoroverthenextdecadeasthecountriesmovetoenhancetheirclimateambitionandaccelerateclimateaction.Sofar,17countrieswereinitiallyselectedtodevelopfullproposalsforgrantsupportunderthePMIcountryprogram.PMIalsofeaturesregionalprogramsforsub-SaharanAfricaandLatinAmericawheretheteamisworkingwithregionalentities,UNFCCCregionalcollaborationcentres(RCCs),andnationalstakeholdersinidentifiedcountriestoprovidecapacitybuildingsupporttobetterunderstandthebuildingblocksofcarbonpricingandexploreopportunitiesforregionalharmonization.Inparallel,thetechnicalworkprogramisbeinglaunchedwiththedevelopmentofknowledgeproductsandthedeliveryoflearningandknowledgesharingeventstosupportcapacitybuildingandtrainingofprofessionalsfromtheimplementingcountries,andbeyond.ClimateWarehouse’sClimateMarketClubpublishedapproachpapersTheClimateWarehouseworkprogramprovidesanalyticalandpilotingsupporttokickstarttheoperationalizationofArticle6.Ithasfourcomplementaryworkstreams:¦Pilotingthecreationofsupplyofemissionreductioncreditsforpost-2020climatemarketsfromtheWorldBank’slendingoperations.¦Demonstratingtheuseofnewtechnologiesandinfrastructuretotrackcreditsandavoiddoublecounting.¦Developingfinancialandrisk-managementproductsthatallowclimatemarkettransactionswhilemanagingregulatoryandmarketuncertainty.¦Facilitatingdiscussionsbetweenpolicymakers,theprivatesectorandexpertgroupsregardingtheregulatoryframeworkandenablingenvironmentforoperationalizingpost-2020climatemarkets.Underthisprogram,theClimateMarketClubisagroupof13governmentsthatjointlydevelopmodalitiesforpilotingArticle6oftheParisAgreement.TheobjectiveistoarriveatacommonunderstandingofkeytechnicalelementsandoutlineoptionsforoperationalizingArticle6.Theworkoftheclubismadeavailabletoawidersetofstakeholdersthroughthepublicationofapproachpapers.During2021,theclubpublishedthefollowingpapers:¦EnsuringEnvironmentalIntegrityunderArticle6Mechanisms¦CountryProcessesandInstitutionalArrangementsforArticle6Transactions¦CarbonAssetDevelopmentProcess¦CountryPolicyFrameworkforCooperativeApproachesUnderArticle6.2.PMIFUPDATETheCPLC’ssisterprogramsundertheWorldBank’sPartnershipforMarketImplementationFacility(PMIF)intensifiedtheireffortstoprovideanalyticalandcapacity-buildingsupporttocountriesentering(andpreparingtoenter)carbonmarkets.22Lowpricesarelimitingcarbonpricing’spotentialFEATURECarbonpricingisprovingeffectiveatreducingemissions.However,asof2022only4percentofemissionsattractedapricesufficientlyhightolimittheglobalaveragetemperatureincreasetolessthan2°C.1.Basedonthestudieswhereinducedreductionsinthegrowthrateofemissionsarereported.Carbonpricingiswidelyconsideredtobeoneofthemostcost-effectiveleversforreducingemissionsatspeedandscale.Itrealignspricingincentivestoreflectthesocialcostofcarbonemissions.ThereportoftheCPLC’sHigh-LevelCommissiononcarbonpricingnotesthatwell-designedclimatepoliciescanbeconsistentwithgrowth,development,andpovertyreduction.Presently,almostaquarterofglobalcarbonemissionsareregulatedviaeitheracarbontaxoranEmissionsTradingSystem(ETS).Thisrepresentssignificantprogressbutalsowarrantsreflection.Inlightofthereal-worldexperiencewithcarbonpricingthusfar,howeffectivehasitreallybeenathelpingreducecarbonemissions?Theex-postevidenceisprimarilyfromdevelopedandafewemergingeconomies.Figure2presentstheaveragepercentreductioninthelevelofcarbonemissionsattributabletocarbonpricingasreportedbyseveralrecentstudies.Thesestudies,whichreportstatisticallysignificantreductions,conveythatinperiodswhencarbonpricingwasinplace,itonaveragereducedthelevelofemissionsrelativetoacounterfactualofnocarbonpricingbymostlyupwardsof5percent.Thesamestudiesalsosuggestthatcarbonpricingreducedemissionsgrowthratesbyaround1.5to2.5percentperyear.1Carbonpricingappearstobeequallyeffectiveatreducingemissionsacrossinstruments,inotherwords,carbontaxorETS.ItisalsoeffectiveacrossjurisdictionswithcarbonpricingdrivingemissionreductionsintheEU,NorthAmerica,andChina.Moreover,carbonpricingappearseffectiveatreducingemissionsinmultiplesectorsincludingpowerandheat,transport,andresidential.FIGURE2:AVERAGEPERCENTREDUCTIONINTHELEVELOFCARBONEMISSIONSSTEMMINGFROMCARBONPRICING,ASREPORTEDBYNEARLYTWODOZENRECENTLYPUBLISHEDSTUDIES23FEATUREWherecarbonpricinghasnotbeenaseffectiveashoped,plausibleexplanationscanbereadilyidentified.Theseincludeoverlappingandcompetingregulation,incompletecoverageandexemptions,andlowcarbonprices.In2017,thereportoftheCPLC’sHigh-levelCommissiononCarbonPricingrecommendedthatpricesshouldbebetween$40/tCO2and$80/tCO2in2020,increasingannuallytoreachbetween$50/tCO2and$100/tCO2by2030toremainwithin2°Cincreaseoverpreindustrialglobalaveragetemperatures.However,despitecarbonpriceshittingtheirhighestlevelsinanumberofjurisdictionsin2021,lessthan4percentofglobalemissionsattractadirectcarbonpriceabovethelowerendofthisrange.Thisshareneedstoincreasesubstantially—ideallytocoverallglobalemissions—toinduceemissionreductionsatspeedandscale.FIGURE3:GLOBALCARBONPRICESASOFAPRIL1,2022Source:StateandTrendsofCarbonPricing2022,WorldBank140120100806040200Carbonprice($/tCO2e)2030carbonpricingcorridor—SAMUELJOVANOKULLOANDJOSEPHDIXONCALLISTOPRYOR,WORLDBANKEachbarrepresentsanimplementedcarbonpricinginstrument.TheheightcorrespondstothepriceoftheinstrumentasofApril1,2022.Lessthan4percentofglobalemissionsarecurrentlycoveredbyacarbonpriceatorabovethepriceneededby2030.24CORPORATELEADERSHIPINACTION25OPINIONSurgeincarbonmarketsisdrivinginnovationintechnologiesandmethodologiesEveryday,organizationsandcompaniesaroundtheworldarecontributingtothediscourseonnewwayscommunitiescanmaximizethebenefitsofcarbonreduction,includingbygainingaccesstonewtechnologies,increasingmarketliquidity,andadvancingthesciencearoundcarbonremovalandsequestration.Thesenewmethodologiesandtechnologiesarenotonlymakingactionpossible,butalsomoretransparentandsolutions-oriented.Theseincreasesarespurringopportunitiesforprojectdevelopersandcommunitygroupstothinkmorecreativelyaroundprojectownershipandfinancialbenefit,aswellasexpandonprojectsthatwouldnothavebeenviableatlowercarbonprices.Blu3.ioisoneexampleofabusinessleveragingthesurgeininteresttogeneratenewsequestrationmarkets.Thecompanyisdrawingondecadesofaquacultureexperiencetosequestratecarboninseaweed,usingaquaticecosystemstomanageemissions.Otheropportunitiesinbluecarbon—whichreferstocarbonthatiscapturedbyoceansandcoastalecosystems—includeVerra’sfirstBlueCarbonproject,whichwasregisteredin2021.Intheyeartocome,wecanexpectthatseveralnewmethodologieswillbereadyforadoption,furtherincreasingopportunitiesforcarbonsequestrationandtheconservationofcriticalecosystems.Thegrowthincarbonmarketsisalsoacceleratingnewcarbonsavingsmeasurementandverificationtechnologies.Businessesthatusecarboncreditsoroffsetsasapartoftheiroverallemissionreductionplanarelookingfornewwaystoguaranteeauthenticityandimpact.Carbonprojectdevelopersneedtomatchthisinterestwithmoreholisticemissionreductionprojectsthatarenotsolelyfocussedonemissionreductionbutalsoconsidersocial,economic,andotherenvironmentalfactors.AfricanCleanEnergyandtheirAceOnecookstovesareagreatrepresentationofhowtechnologicaladoptioncanfurthersupportprojectsinmaximizingcommunitybenefit.TheirprojectsconnectthestovewithapairedsmartphonewithanAndroidapp,whichallowsanaddedleveloftransparencyonusageandcarbonsavingsoremissionreductionsgenerated.Gettingnewtechnologiesandsolutionsinthehandsofcommunitygroupscreatesamoreholisticapproachtoaddressingtheclimatecrisisandcanassistinmakingcarbonmarketsmoretransparentandaccountable.Thishasopenedthedoortonewcreativityaroundtechnologiesthatwillleadtocommunities,governments,andbusinessesmakingsmarter,moreinformeddecisionsontheiremissionreductionpathway.Theyear2022willbecharacterizedasoneofgrowthforglobalcarbonmarkets.Globally,carbonmarketsareatanall-timehigh,manyexpandingbyalmost200percent.Whilethishascomedownsincethestartof2022,manybelieveitisasignofwhatistocome.Thisexpansionhasledtomeaningfulinvestmentsinreducingglobalcarbonemissionsandfueledinnovationinhowwedoit.MichaelGreenFoundingpartner:ClimateCapitalAdvisorsCo-chairofCPLCAdvisoryGroup26NewsfromthefrontiersofvoluntarycarbonmarketsCORPORATELEADERSHIPINACTIONSeveralCPLCpartnershavepioneerednewplatformsandtoolstoimprovethetransparencyandefficiencyofglobalvoluntarycarbonmarkets.VoluntaryCarbonMarketIntegrityInitiativeaimstoaligncorporationswithParisAgreementgoalsTheVoluntaryCarbonMarketIntegrityInitiative(VCMI)isaglobal,multistakeholderplatformlaunchedin2021.Itwasestablishedtohelpensurethatvoluntarycarbonmarketsmakeasignificant,measurable,andpositivecontributiontotheglobaltransitiontoa1.5°Cfuturewhilepromotinginclusive,sustainabledevelopment.VCMItakesitsmandatefromitsmulti-stakeholderprocess,whichconfirmedtheneedforgovernanceofvoluntarycarbonmarkets.InJune2022,VCMIwilllaunchandtestitsproposedClaimsCodeofPractice.Thecodeprovidesguidancetocompaniesandothernon-stateactorsregardingwhenandhowtheymaymakeclaimsassociatedwiththevoluntaryuseofhigh-qualitycarboncreditstowardtheirdecarbonizationgoals.S&PreleasescreditpricingbenchmarksAwidevarietyoffactorsaffectthepriceofcarboncreditsonvoluntarycarbonmarkets,includingwhetheritisaremovaloravoidancecredit;thevolumeofcreditsbeingtradedatthetime;andthenatureoftheprojectgeneratingthecredit,specificallywhetheritalsoachievesothersocialandenvironmentalgoals.Tohelpbusinessesmakeinformeddecisions,betweenJanuaryandAugust2021S&PGlobalPlattslaunchedninepriceassessmentsfordifferenttypesofcarboncredits.Eachpriceassessmentreflectsthemostcompetitivecreditforeachcategorybasedonbids,offerstradesreportedinthebrokeredmarket,orontradingandexchangeinstruments.ThecategoriescoveredincludeCORSIA-eligibleprices;avoidancecreditsfromnature-basedsolutions,householddevices,andindustrialpollutants;andremovalscreditsfromnaturalandtechnology-basedcarboncapture.Nature-basedcreditsremainpopularonthemarketastheyarebroadlyseenasaguaranteeof“quality”,despiteincreasedscrutinyonnature-basedcreditsinthewakeofwildfiresacrosstheNorthernHemispherein2021.Therewasalsoalotoffocusonforestryprotectionintherun-uptoandfollowingCOP26,whichcorrespondedwithanincreaseininterestinnature-basedsolutionsinthesecondhalfof2021,beforegeopoliticaldiscordproducedashiftininvestmentstrategiestowardsothercommodities.Thenature-basedavoidancebasketofpricesstoodat$7.06/mtCO2eonits9August2021launchandpeakedat$16.20/mtCO2eonJanuary21,2022.Itwasassessedat$11.95/mtCO2eonMarch25,2022.Nature-basedcarboncapturepriceswerefirstassessedat$15/mtCO2eonAugust9,droppingto$12.77/mtCO2eonOctober20beforeclimbingtoapeakof$22.10/mtCO2eonFebruary1.StandardCharteredBankofficialappointedtoboardofIntegrityCouncilforVoluntaryCarbonMarketsTheIntegrityCouncilforVoluntaryCarbonMarketsisanindependentgovernancebodyestablishedinlate2021tosetandenforceglobalstandardsforthevoluntarycarbonmarket.Itspurposeistoensurethevoluntarycarbonmarketsupportsglobaldecarbonisationbymobilisingfinanceintoprojectsthatreduceorremovegreenhousegasemissions.ChrisLeeds,theHeadofCarbonMarketsDevelopmentatCPLCpartnerStandardCharteredBank,waselectedasaboarddirectortorepresentmarketparticipants.ThisaccoladecomesatatimewhenStandardCharteredBankhasintensifieditsactivitiesinthecarbonmarketsspace.InMay2021,thebankbecameafoundinginvestorinClimateImpactX,aSingapore-basedglobalcarbonexchangeandmarketplaceforhigh-qualitycarboncredits.InAugust2021,itlaunchedanEnergyTransitiondesktomanagecustomerriskontheglobalcarbonandnaturalgasmarkets,andinJanuary2022,itjoinedaconsortiumofinternationalbankstodevelopCarbonplace,aglobalinfrastructureproviderconnectingcarbonmarketsaroundtheworld.27CORPORATELEADERSHIPINACTIONPromisingpartnerships,programs,andtechnologiesCPLC’sprivate-sectorpartnersarededicatingsubstantialresourcestodeveloppartnershipsandtechnologiesthatsupportthetransitiontonetzero.NewCPLCpartnerPowerledgerbringsblockchaintechnologytoenergyandenvironmentalcommoditiestradingPowerledgerdevelopsblockchain-enabledsoftwareplatformsandmarketplacestotrackandtradeenergyandenvironmentalcommoditiessuchasrenewableenergycertificatesandcarboncredits.Blockchain-enabledtracking,tracing,andtradingprovideassuranceandincreasetrustthroughthecreationofimmutable,accessible,andauditablerecordsacrossacommodity’sentirelifecycle—fromcreditgenerationthroughvalidation,verification,registration,sale,andretirement.ThecompanyisintheprocessoflaunchingrenewableenergycertificatemarketplacesinSoutheastAsiaandNorthAmerica(inpartnershipwithM-RETS,acertificateregistryintheUnitedStates),aswellasintegratingwiththeInternationalRenewableEnergyCertificatestandard.Theplatformitself,TraceX,iscommodityagnosticandpresentsanopportunityforthedevelopmentofefficient,effective,credible,secure,andtransparentcarbonmarkets.Notalloffsetsarecreatedequal.Whereoneoffsetcouldhaveproblematicsocialimpactsorbeknownfornotlivinguptoitsclaims,anothercouldberecognizedasagoldstandardandlinkedtoasocialgood.Blockchainimprovesthequalityofcreditsandtransparencyofmarketsbyprovidingmoregranularinformationabouttheirattributes.Over-the-countermarketsofferlimitedpricediscoveryacrossthevarioustypesofcarboninstruments.Thisreducestrust,increasescostsandsettlementtime,andcanresultinartificialpriceinflation.TraceXleveragesblockchainandacontinuousdouble-auctionprocesssobuyersandsellerscanlisttheirpricesandattributesinatransparentway.Thisresultsinincreasedspeed,costsavings,reducedbackoffice,quicksettlement,andgreaterstandardization.EnvironmentalandEnergyManagementInstituteatTheGeorgeWashingtonUniversityinpartnershiptohelpsmallandmediumenterprisesentercarbonmarketsTheEnvironmentalandEnergyManagementInstitute(EEMI)atTheGeorgeWashingtonUniversityinWashington,D.C.,haspartneredwithCarbonOffsetsLLCtohelpsmallandmediumenterpriseswiththecomplextaskofenteringcarbonmarkets,selectingcarbonoffsetstobecomecarbonneutral,andde-riskingtheircarbonoffsetportfolios.CPLCSingaporelaunchescapacity-buildingprogramforbusinessesinSingaporeInOctober2021,CPLCSingapore—withthesupportofSingapore’sNationalEnvironmentAgencyandEnterpriseSingapore—launchedLowCarbonSG,acapability-buildingprogramtoenablelocalbusinessesinSingaporetostartmonitoringand,wherepossible,reducetheircarbonemissions.CompaniesthatsuccessfullymeasureandmonitortheircarbonfootprintswillbeissuedaLowCarbonSGparticipantlogo.InApril2022,datafromtheLowCarbonSGprogramwasusedtoproducetheinauguralSingaporeBusinessCarbonReport2021—thefirstofitskindforSingapore.28CORPORATELEADERSHIPONACTIONMicrosoftdonates$100milliontothedevelopmentofkeygreentechnologiesInSeptember2021,Microsoftannouncedadonationof$100million—fundedfromtheproceedsofitsinternalcarbonfee—toBreakthroughEnergyCatalyst,ahigh-levelpublic-privatepartnership,toacceleratethedevelopmentofclimatesolutionsinfourkeyareas:greenhydrogen,directaircapture,longdurationenergystorageandsustainableaviationfuel.Thisisinadditiontothe$471millionallocatedtoacceleratingthedevelopmentanddeploymentofnewclimatetechnologiesthroughits$1billionClimateInnovationFundsincethelaunchofthefundinJanuary2020.RecentinvestmentsthroughthisfundincludeLanzaJet,BlocPower,andEversource.RUSALlauncheslow-carbonaluminumsmelterRUSAL’scorporateinternalcarbonpricehasproventobeanimportantdriverforthecompany’sshifttocleantechnologies.In2021,RUSALcommissioneditsnewlow-carbonTaishetAluminiumSmelter,whichrunsfullyoncleanenergyfromSiberianhydroelectricpowerplantscombinedwithmoderngas-purificationequipment.Italsopilotedtheuseofinertanodesinitsproductionprocesses.InertanodesarenotcorrosiveandthereforereleaseoxygenratherthanCO2duringthealuminumreductionprocess.HolcimcontinuesgreeningitsproductsInrecentyears,Holcimhaslaunchedawiderangeoflow-carbonsolutionsthatenableittoreducebothitsownGHGemissionsaswellasthatofitscustomers.Itsgreenconcrete,calledECOpact,isavailablein25countriesandisforecasttorepresent25percentofHolcim’sready-mixsalesby2025.Itprovidesarangeoflow-carbonlevels,from30percentto100percentlesscarbonemissionscomparedtostandard(CEMI)concrete.Inparallelitisdevelopingthenextgenerationofcircularproductswithupto100percentcircularity.NewCPLCpartner,AMEAPower,appointsdedicatedcarboncreditsteamtoremainabreastofpolicydevelopmentsAMEAPower,aDubai-baseddeveloper,owner,andoperatorofrenewablegenerationassetsandpowerplantswithprojectsintheMiddleEast,Africa,andemergingAsia,createdadedicatedteamin2021tobetterunderstandcarboncreditsmarketsandworkwithbusinessowners,governmentleaders,andmembersofthepublicwhoseektodothesame.AMEAPowerproducesvoluntarycarboncreditsfromallitsrenewablegenerationpowerplants.UnderstandingnationalandsupranationalpoliciesthataffectthepricingofcarboncreditsisthereforeimperativeforallowingAMEAPowertoengageinmarketsinafair,compliant,andethicallysoundmanner.29OPINIONOurnextpriority:decarbonizingagri-foodThefoodchainalreadyrepresentsmorethanaquarterofglobalGHGemissions,andglobaldemandforfoodisprojectedtodoubleinthenexttwodecades.Indeed,morethan85percentofemissionsinatypicalfoodchaincomesfromupstreamfoodproductionandassociatedlanduse,whichisconsideredScope3emissionsforlargefoodcorporates.Inordertoliveuptheirnetzeroemissioncommitments,foodcorporateswillhavetocooperatewithfarmersintheirsupplychainstosetupreductionprojectsatfarmlevel.Farmerscanalsoengageincarbonfarming,whichinvolvesusingregenerativefarmingpractices(suchasreducingtillage,croprotations,andplantingcovercrops).Thisresultsinmorecarbonbeingcapturedinplantsandsoil.Rabobankisworkingtoreduceemissionsandenhanceremovalsintheagri-foodsectoracrossthesupplychain.CentraltothiseffortistheRaboCarbonBank,whichsupportsbothfarmerstransitioningtocarbonfarmingandfoodcorporationsseekingtodecarbonizetheirsupplychains.Soilsequestrationgenerateshigh-qualityremovalcreditsbecauseofitsco-benefits,includingimprovedbiodiversity,betterwatermanagement,andtheproductionofmoreclimateresilientandnutritiousfood.Workingcloselywithagronomicadvisors,remotesensingexperts,andstandard-settingorganizations,wehelpfarmersmonetizetheirregenerativepracticesandconnectthemwithcorporatesseekingtomeetnet-zerocommitmentsandoffsetunavoidableemissions,sohelpingtoreduceemissionsalongfoodvaluechains.Ontheremovalsfront,wearecurrentlyconcludingpilotprojectsrelatedtosoilhealthandsequestrationintheUnitedStatesandintheNetherlands.Thesewillbescaledtocornandsoyafarmersduring2022,withpilotsforothercropsplannedsoon.Wealsohaveanagroforestrypropositionforsmallholdersindevelopingcountries,arerunningafforestationpilotprojectsforlargerfarmersinBrazil,andaresettingupacarbonsolutionforpeatlandsintheNetherlands.Carboncapturedthroughcarbonfarmingcanbeconvertedintovalidatedremovalunitsand,ultimately,intocertifiedcarboncredits.Thesecanbesoldtocorporates,generatingrevenueforthefarmertofinancefurthertransitionstosustainableagriculture.Ontheemissionsreductionfront,wearecurrentlypilotingprojectstoreduceemissionsinthedairysubsectorintheUnitedStatesandtheEuropeanUnion.Togetherwithfoodcorporatesandfarmers,wesetupreductionprojects,suchasmethanedigestersandalternativeanimalfeed,atfarmlevel.However,farmersarenotyetabletoselltheirreductioneffortsinthesamewaytheyareabletosellthecarboncreditstheyhavegenerated.Toclosethisgap,RaboCarbonBankhascreateda“reductionunit”,whichseesfarmersfinanciallyrewardedforreducingtheiremissions,soencouragingthemtoimplementfurtherlowcarbonpractices.Togetherwithourpartners,RaboCarbonBankmonitorsandverifiesthesecarbonreductionsonbehalfofourlargefoodandagribusinessclients,andmakessurethatthesecompaniesareabletoclaimreductionsagainsttheirScope3emissions.Privateinitiativesofthiskindgainstrengthifthegovernmentintroducesauniform,economy-widecarbontax.Iftheemissionofgreenhousegasesbecomesmoreexpensive,companieswillhaveacontinuousincentivetoreduceand,wherethisisnotfeasible,tocompensate.DrBarbaraBaarsmaChiefexecutiveofficer,RaboCarbonBank30HowcarbonpricingishelpingtheprivatesectorstrivefornetzeroCPLC’sprivatesectorpartnersreflectontheirsuccesses,challenges,andaspirationsinusingcarbonpricingtoachievetheirnetzerogoals.Microsoftcommitstoannualinternalcarbonpriceincreasesandbuys1.4millionmetrictonsofcarbonremovalsMicrosoft’scommitmenttonetzerocontinuedin2021/22withthecompanyincreasingitscarbonprice—andcommittingtoaggressiveyearlyincreasesgoingforward—toincentivizegreaterreductionsinScope3emissionsandbetterreflectthecostofcarbonabatement.Asanexample,itsScope3businesstravelpricenowstandsat$100permtCO2e.InFY21,Microsoftpurchased1.4millionmetrictonsofcarbonremovalcredits,anumberthatislikelytoincreaseto1.5millionmetrictonsinFY22,withboldercarbonremovaltargetsplannedbetweennowand2030.Thescaleofthesepurchaseswillhelpdrivemarketmaturationincarbonremoval.CPLCpartnerTemaseksetsinternalcarbonpricetoreduceemissionsininvestmentportfolioTemasek—aSingapore-headquarteredinvestmentfirmwithanetportfoliovalueofS$381billion($283billion)asatMarch31,2021—hascommittedtohalvecarbonemissionsattributabletoitsportfolio,relativeto2010levels,by2030,andtoachievenetzeroby2050.Toinformitsinvestmentdecisions,in2021Temaseksetaninitialinternalcarbonpriceof$42/tCO2e,whichitexpectstoraiseprogressivelyoverthedecade.EmbeddinganinternalcarbonpricehelpsRUSALcutaluminumproductionemissionsby8percentIn2017,multinationalaluminumproducerRUSALstartedapplyinganinternalcarbonprice(initiallysetat$20/tCO2e)toinformdecisionsrelatedtoitsprojectsandoperations.Withcarbonpricingembeddedinitsfinancialandstrategicdecisions,thecompanyreduceditstheScope1and2carbonfootprintofprimaryaluminumproductionby8percentin2020againsta2017baseline.SwissRestepsupinternalcarbonpricetofinancetransitiontonet-zeroReinsurancecompanySwissRe,whilenotaCPLCpartner,isnonethelessachampionofinternalcarbonpricing.InJanuary2021,companyincreaseditsinternalcarbonpricefrom$10/tCO2eto$100/tCO2e.ThecompanycallsthispriceitsCarbonSteeringLevy,becauseitisdesignedtodrivedownemissionsasthepricegraduallyincreasesto$200/tCO2eby2030.Tomakesurethelevyguidesdecisions,itisprominentlydisplayedinexpensedashboardsandthetravel-bookingtool.TherevenuefromthelevyisspentoncarbonmitigationeffortsbeyondSwissRe’sownvaluechain.Since2003,thecompanyhasalreadycompensatedmajorpartsofitsresidualoperationalfootprintthroughcarbonavoidancecertificates(offsets).Toreachnet-zeroby2030,itisnowmovingfromconventionaloffsetstohigh-qualitycarbonremovalcertificates.Initially,thepriceofthemostdurable,scalableremovalsolutionswillexceedthelevy,whileoffsetsareavailableformuchless.Mixingcheaperoffsetswithcostlyremovalsallowsthecompanytoaligntheaveragecarboncertificatepricewiththelevy.Overtime,removalsbecomecheaperandthelevyincreases,enablingtheshareofremovalsinthecertificatemixtograduallyrisefrom0percentin2020to100percentin2030.CORPORATELEADERSHIPINACTION31Usinga10-yearcarbonpricingpolicytosecuresufficientfundingfornet-zeroalignedcarboncertificatesallowsSwissRetosourceremovalsthroughlong-termpurchaseagreements,whichsendsastrongmarketsignalandhelpsimprovethebankabilityofremovalprojects.InAugust2021,SwissResignedthefirstsuchdeal,worth$10millionover10years,withcarbonremovalpioneerClimeworks.UnilevermakesinternalcarbonpricemandatoryforbigprojectsUnileverhascommittedtoachievingzeroemissionsfromitsoperationsby2030.Tosupportthis,itusesaninternalcarbonprice—setat€70/tCO2($76/tCO2)in2022—toguidecapitalexpendituredecisionsandbusinesscaseevaluations.Varioustoolshavebeendesignedtomakethisanalysiseasierforteams.Asofthisyear,itismandatoryforallprojectswithatotalinvestmentofmorethan€1million($1.09million)toapplytheinternalcarbonprice.Thiscoversapproximately80percentofthecorporation’stotalannualcapitalexpenditure.Inparalleltothecompany-wideapproachdescribedabove,twobrandsuseinternalcarbonpricingtocreatetheirownsustainabilityinvestmentfunds.Ben&Jerry’sandSeventhGenerationbothapplyacarbontaxtotheirlifecycleemissionstocreatededicatedsustainabilityfunds.Therevenuesfromtheseinternaltaxesareinvestedinavarietyofprogramstoreducethecarbonfootprintassociatedwiththosebrands.ForexampleBen&Jerry’sfundacademicresearchtoinvestigatewaysofreducingtheemissionsfromthedairyindustry.Internalcarbonpricingremainsauseful—thoughnottheonly—toolasthecompanyworkstowardsachievingitsclimategoals.MahindraseesunexpectedbenefitsinteamefficiencyfromapplyingacarbonpriceMahindrabecamethefirstIndiancompanytoannounceaninternalcarbonpriceof$10/tCO2ein2016,withtheaimofreducingemissionsby25percentperunitofoutputoverthreeyears.Now,sixyearslater,annualemissionshavebeenreducedby65,000tons,andthebusinesssaves$19millioneachyearbecauseoftheinvestmentsmadeintoreducingemissions.Theseinvestmentstotal$32millionandwerelargelyfundedbytheinternalcarbonprice.Theinternalcarbonpricehashadseveralknock-onbenefitsforthecompany’stransitiontonetzero.Becausethereisfundingavailableforsustainabilityprojects,teamsarebetterabletousetheirtimetoidentifyingandbuildingbusinesscasesratherthancanvassingforfunds.Thiscontributedtoamassiveupscalingofprojects,makingiteasierforthecompanytomeetitsdecarbonizationstretchgoals.ProjectedcarbonpricessupportShell’sinvestmentinnewcarboncaptureandstorageprojectinCanadaShellsupportscarbonpricingmechanismsasakeypolicytoolthatgovernmentsandbusinessescanusetohelpincreaseglobalambitionandcreateincentivestoinvestinlower-carbontechnologiesandinfrastructuresuchascarboncaptureandstoragefacilities.ShellalreadyoperatestheQuestcarboncaptureandstoragefacilityinAlberta,Canada.Sinceitwascommissionedin2015,thisfacilityhascapturedandpermanentlystoredmorethan7milliontonsofemissions(asofearly2022).TheprojectedpriceofcarboninCanadawasoneoftheconsiderationsthatpromptedShelltoannounceinJuly2021aproposaltobuildasecondlarge-scalecarboncaptureandstorageprojectatitsScotfordComplexinAlberta.Theprojectisexpectedtostartoperationsaroundmid-decade,subjecttoafinalinvestmentdecisionbyShellexpectedin2023.CORPORATELEADERSHIPINACTION32CarbonmanagementsoftwareSweepraisesnewfundingtoscalecorporateclimateactionNewCPLCpartnerSweep,anall-in-onecarbonmanagementtoolforlargeenterprises,hasraised$73millioninSeriesBfunding12monthsafterlaunchingpublicly.TheSweepapproachhelpslargeenterprisesembedscience-based,data-drivenclimateprogramsintheiroperationsandmoveawayfromseeingcarboncreditsasa“consumable”.Carboncreditexpendituresareafinancialcontributiontomeetingsustainabilitytargets.Inotherwords,companiesshouldcreatea“carboncontributionbudget”basedonaninternalcarbonpriceasitwillhelpfinancetheirlowcarbontransition—fromthedecarbonizationoftheirproductsorservicestocarboncreditinvestment.EN+Groupreaffirmscommitmenttonetzeroby2050InSeptember2021theEn+Group,aleadingproducerofcleanenergyandlow-carbonaluminum,publisheditsPathwaytoNetZeroReport,inwhichitlaidouttheplannedstepstoreduceGHGemissionsby35percentby2030,aimingfornetzeroemissionsby2050(Scope1andScope2).Thisincludesheatandelectricityproductionaswellasaluminumproduction.Bothareclassifiedashard-to-abate.ModernizingequipmentandintegratingtheaccountingofGHGemissionsintoprojectassessmentsarecentraltoachievingtheseambitiousgoals.PartnerproposesacarbonpriceonanimalproteinDietshighinplantproteinandlowinmeatanddairyareassociatedwithlowerGHGemissions.Puttingapriceonmeatanddairythatreflectsthenegativeexternalitiesofeatingtheseproductscouldprovideapricesignaltoconsumerstoreducetheirconsumptionoftheseproducts.ThisistheessenceoftheTrueAnimalProteinPrice(TAPP)Coalition’ssubmissiontotheEuropeanUnionCommission,whichhasannouncedthatitwill,bytheendof2023,publishproposalsastohowtoapplythe“polluterpays”principleforGHGemissionstoagriculture.TAPPhasproposedapplyingexcisedutiestomeat,dairy,andlivestockfor50countries.Thiscouldbedoneviaanemissionstradingsystemoracarbonborderadjustmentmechanism.Bydramaticallychangingthefoodweeataswellasthewayitisproduced,TAPPbelieveshumanscanhelpstopthedevastatingimpactsofclimatechange.CORPORATELEADERSHIPINACTION33Citizens’ClimateInternationalsupportsclimateincomeCIVILSOCIETYINACTIONCitizens’ClimateInternational(CCI)believescountries—andindeedtheplanet—needcarbonpricingthatcoversallemissions,isadministrativelycoherentandtransparent,andputsasteadilyintensifyingcostonpolluters,whileenhancingtheeconomicopportunitiesofhouseholdsandcommunities.ThisiswhyCCIsupportsclimateincome—thereturnofrevenuestohouseholdswhilecarbonfeessteadilyrisewillhelpensurethattheescalatingpricesignalisfeltmostdirectlybypollutingindustries.ToenablecitizenslivingintheUnitedKingdomtoseehowalocalclimateincomepolicywouldaffecttheirhouseholdincomeovertime,in2018CCIadvocatesdevelopedtheClimateIncomeCalculator,whichshowsthatmosthouseholds—especiallylow-incomehouseholds—wouldgainmorethantheylosewhilebringingthecountry80percentofthewaytonet-zeroin2050.CCIrunsweeklycoordinatingmeetingsforvolunteerpolicyadvocates,hascreatedanInternationalCarbonPricingCooperationDashboard,whichincludesasurveyofclimateincomeinstrumentsandadvances,andisprovidingongoingeducationin76countries.EMERGINGVOICESCitizens’ClimateInternationalvolunteerssharetheirthoughtsonwhatcarbonpricingrepresents.“Itisimportantthatcarbonpricingisaworldwideeffort.Theonlywaywewilladvanceistoadvancetogether.”—TatjanaGojmerac,carbonpricingadvocateinSpain“Carbonpricingbackedbystrongpoliciesisourbestchanceatensuringthatwedon’tleavethecostofouremissionsforfuturegenerations.”—GloriaKasangBulus,carbonpricingadvocateinNigeria“Carbonpricingistheinstrumentweneedtobringaboutthedivorcebetweenglobaleconomiesandfossilfuels.”—JosephIbrahim,carbonpricingadvocateinNigeria34ABOUTTHECPLC35Muchtocelebrate,muchmoretobedoneSinceourlaunchinNovember2015,CPLChasplayedaleadingroleinamplifyingthecarbonpricingdebate.Wehaveestablishedourselvesasatrustedpartnerinthecarbonpricingspaceforgovernments,theprivatesector,andcivilsociety.InourinauguralyearwepublishedtheFasterPrinciples,aguidetoeffectivecarbonpricingprinciples.WecoordinatedtheHigh-LevelCommissiononCarbonPrices,whichidentifiedindicativecorridorsofcarbonpricesthatwouldincentivizeboldclimateactioninlinewiththeParisAgreement.ThiswasfollowedbytheHigh-LevelCommissiononCarbonPricingandCompetitiveness,whichhelpedaddressbusinessleaders’concernsaroundreducedcompetitivenessduetocarbonpricing.Andin2021,weconvenedtheTaskForceonNetZeroGoalsandCarbonPricing,whichexploredtheroleofcarbonpricinginthetransitiontonetzerooverthenext10to15years.Thepublicationsresultingfromtheseinitiativeshavecementedourroleasatrusted,objectivepartnerincarbonpricing.Inadditiontothesereports,wealsopublishednumerousbriefingnotesandconvenedstakeholdersincloseto100eventsaroundtheworld.Muchhaschangedoverthepastsixyears,yetonethinghasremainedconstant:thecriticalneedforcoordinationinourresponsetoclimatechange.Threesignificantmomentshavebroughtthisintosharpfocus.¦COVID-19exposedbothourfragilityandourneedforinternationalcollaboration.Ifthepandemichasshownusonething,itisthatgloballycoordinatedresponsesareneededtoaddressglobalchallenges.COVID-19alsoremindedusofourresilienceinthefaceofnovelthreats.IfwehopetomeettheambitioustargetsoftheParisAgreement,wemustdrawonourpowersofcooperation.Asaglobalplatform,theCPLCcreatesspacesforinternationalcooperation,linksmarkets,andscalesupclimatefinancesolutions,playingakeyroleingalvanizingagloballycoordinatedresponsetoclimatechange.¦COP26demonstratedthepowerofbringingtogethergovernment,publicsector,andcivilsociety.AttheclimateconferenceinGlasgowin2021,itfeltasthoughwereachedawatershedmomentinwhichwehad“allhandsondeck”—governments,businesses,andcivilsociety—witheachbringingvaluablecontributionstothetable.Inasignificantstep,COP26negotiationsclarifiedtherulesthatwillhelpputArticle6oftheParisAgreementintopractice.Thiswasatangiblesteptowardsreachingnetzero,andweasCPLCcanbeproudthatweplayedaroleinthisthroughstrengtheningthecaseforcarbonpricing.¦The“giletjaunes”protestsof2018showedusthatgovernmentsalonecannotleaddecarbonization.TheviolentresponsetoanewgastaxaspartofabroaderplantoreduceFrance’srelianceonfossilfuelsshowedustheimportanceofasharedvision.Widersocietyneedstoparticipateindesigningsolutionssothattheyareacceptedandimplementable.Here,theCPLChasaroletoplayasaplatformfordialogue.Ourcomparativestrengthisinourabilitytobringrepresentativesfromcivilsocietytothetableonanequalfootingwithgovernments,theprivatesector,andinternationalagencies.CPLCSECRETARIATTheCPLCteamhasachievedalotinarelativelyshorttime.Butthereisstillsomuchmoretobedoneascountries,companies,andpeoplecometogethertounravelthedamagecausedbydecadesofeconomicgrowthbasedonfossilfuels.36AtaCPLC-convenedhigh-leveleventatCOP26,CanadianPrimeMinisterJustinTrudeaucalledfor60percentofemissionstobecoveredbyapriceoncarbonby2030.BackedbytheconveningpowersoftheWorldBank,theCPLCisstrategicallyplacedtorespondtothiscalltoaction.Weencourageourpartnerstomakeuseoftheopportunitiestotapintothisrisingclimateambitionpresentedbyourplatform.Weareencouragedbytherelentlessdedicationthatourpartnersacrosstheglobehaveshowntowardsusingcarbonpricingasamechanismtodrivedownnetemissions.Itisexcitingtoseerevenuesgeneratedfromcarbonpricingusedininnovativeways,suchasfundingusedforsocialbenefits,mobilizinginnovationincleantechnologies,andasanincentivetoadoptclimate-friendlypractices.Ourvalueasatrustedpartnerisclearwhencorporationsapproachustoguidethemontheirfirststepstowardsnetzero,ortoactasapartnershipbrokerwithrepresentativesfromthepublicsectororcivilsociety.TheParisAgreementmaysetourcourse,butwesteadfastlybelievethatcollectiveactioniswhatwillcarryustonetzero.CPLCSECRETARIATTheCPLCSecretariatFromlefttoright:JichongWu,MerceditaGarciaCano,PolaSeongeunShim,IsabelSaldarriagaArango,LibertyRamirezEspiritu,AngelaChurieKallhauge,JeannetteRamirez,andMichaelMcCormickNotinpicture:MarissaSantikarn,ShaminiSelvaratnam,MitikAyalewZegeye,GoMukai,andSamuelJovanOkullo—CPLCSecretariat37WhoweareTheCarbonPricingLeadershipCoalition,orCPLC,waslaunchedin2015topromotecarbonpricingasaneffectivetooltodrivemitigationactionascountriesstartedreducingtheircarbonemissionsintermsoftheParisAgreement.Itisavoluntaryinitiativethatbringstogetherleadersfromgovernment,business,civilsociety,andacademiatoenhanceglobalunderstandingofcarbonpricingasatoolforacceleratingandfinancingeffectiveclimateaction.Fromapartnershipbaseof21governmentsand90businessesandcivilsocietyorganizations,theCPLChasgrowntoinclude36nationalandsubnationaljurisdictions,181businesses,and104civilsocietyorganizations.Membershipisvoluntaryandrequiresnomembershipfee.TheCPLCprovidesaplatformforitspartnerstolearnaboutcarbonpricing,stayuptodatewithnewdevelopmentsandresearchinthefield,andshareexperiencesrelatedtothechallengesinvolvedwithimplementingcarbonpricingmechanisms.ABOUTTHECPLCOurmissionWeconveneleadersfromgovernment,business,civilsociety,andacademiaacrossallregionsoftheworldtoadvocatefor,andcatalyzeactiontowards,thesuccessfulimplementationofcarbonpricingtoaddressclimatechangeandcontributetosustainabledevelopment.OurapproachTheCPLCstrivesto:¦Mobilizeandhighlightexamplesofdemonstratedleadershiponcarbonpricing,andbuildthecaseforotherstotakeaction¦Identifycriticalconstraintstocarbonpricing,fostercommonunderstandingofsolutions,andidentifyopportunitiestoenhancetheuseofcarbonpricingpoliciesandmeasures¦Deepenadvocacyeffortswiththeprivatesectorandcivilsocietytofostercollectiveaction¦Strengthentheknowledgebasebyeffectivelycommunicatingunbiased,rigorous,andobjectiveinformationonkeyissues¦BroadenadvocacyandengagementinregionsthatarenotwellrepresentedintheCPLC.38OurprioritiesOurprioritiesareto:¦Amplifytheroleofcarbonpricinginachieving2030netzerotargets¦Promotecarbonmarketsandglobaltrade¦Ensureajusttransitiontoalow-carboneconomy.ABOUTTHECPLCOurleadersandteamTheCPLCSecretariatisadministeredbytheWorldBankGroup.ItisgovernedbytheHigh-LevelAssemblyco-chairsandanAdvisoryGroupof21representativesfromgovernment,business,andstrategicpartners.AdvisorygroupTheCPLC’sAdvisoryGroupprovidestechnicalguidanceandinsightsondevelopmentsincarbonpricing,whileidentifyingopportunitiestoexpandtheCPLC’sreach.GOVERNMENTFelipeDeLeónDenegri,CostaRicaNeilDobson,BritishColumbiaSyedaHadikaJamshaid,PakistanJuanPedroSearle,ChileChrisShipley,UKPRIVATESECTORAnirbanGhosh,MahindraGroupShilpaGulrajani,BNPParibasThomas-OlivierLéautier,ElectricitédeFranceChrisLeeds,StandardCharteredBankCédricdeMeeûs,LafargeHolcimJasonMitchell,ManGroupEmmanuelNormant,Saint-GobainSusanShannon,ShellSTRATEGICPARTNERSANDCIVILSOCIETYEmilyFarnworth,UniversityofCambridgeBiancaGichangi,EastAfricanCarbonMarketAllianceMichaelGreen,SolutionsforClimatePartnershipMarinaMattar,PerspectivasSophiePunte,WeMeanBusinessCoalitionJosephRobertson,Citizens’ClimateLobbyOusmaneFallSarr,WestAfricaCarbonMarketAllianceKatieSullivan,InternationalEmissionsTradingAssociation(IETA)HIGH-LEVELCARBONPRICINGCHAMPIONSFeikeSijbesma,RoyalDSMMahendraSinghi,DalmiaCement(Bharat)Ltd39ABOUTTHEPMIFOtherprogramsunderthePartnershipforMarketImplementationFacilityThePMIFisimplementedincollaborationwithWorldBankGroupregions,countrymanagementunits,andglobalpracticestoleverageandsupportoperations.TheworkisstructuredaroundthefourpillarsinTable1.CPLCisacomponentundertheadvocacypillarandsupportedbythePMIF,andotherprogramsandinitiativesunderit,byleveragingresourcesandcreatingsynergies.ADVISORYADVOCACYINNOVATIONKNOWLEDGEANDOUTREACHSupportcountriesinbuildingtheircapacitytodesignandimplementcarbonpricingpolicies.Useacountry-specificapproachtocreateenablingenvironmentforprivateinvestmentinclimate-smartinitiatives.Convene,deliver,andexchangeconsultativedialogueswithkeystakeholdersoncarbonpricingpoliciesandmarketdevelopment.Facilitateleadershipdialoguetocatalyzeactiononcarbonpricinginpublicandprivatesectors.Conceptualizeanddevelopnewideasandprototypes,carryouttestingandpiloting.Developnewtoolsandassessmentframeworks,exploretheuseofnewtechnologies,developinnovativefinancialapproaches,andsupportthedevelopmentofanenablingenvironment.Supportdevelopmentoftechnicalknowledgeproducts,tools,andassessmentframeworks.Developcarbonpricingguidebooksandhostglobalconferencesandworkshops.TABLE1:FOURPILLARSOFTHEPARTNERSHIPFORMARKETIMPLEMENTATIONFACILITYTheCarbonPricingLeadershipCoalitionisaninitiativeunderthePartnershipforMarketImplementationFacility(PMIF),whichisaglobal,multi-donorprogramlaunchedin2021tohelpaccelerateglobaldecarbonizationefforts.Itaimstocatalyzethedevelopmentofthenextgenerationofinternationalcarbonmarkets,andbetheone-stopshopforclientcountrieslookingtodesignanddeploycarbonpricingpolicies/programsinlinewiththeirdomesticcontextsandsustainabledevelopmentpriorities.ThePMIFalsorunsseveralotherprograms.CARBONPRICINGLEADERSHIPCOALITIONPARTNER-SHIPFORMARKETIMPLEMEN-TATIONAnchorprogram.Seepage21CLIMATEWAREHOUSESeepage21NETWORKEDCARBONMARKETSCOMPACTWITHAFRICA–GREENBUSINESSFUNDINNOVATE-4CLIMATEREGIONALCLIMATEWEEKSPARTNERSHIPFORMARKETIMPLEMENTATIONFACILITY(PMIF)AboutthePartnershipforMarketImplementationFacility40Ouractivitiesin2021/22JUNE2021WorkshopClimateIncomeTechnicalWorkshopThistechnicalworkshopexaminedClimateIncomeSystemsasawaytopricecarbon,putclimate-smartmoneyinpeople’spockets,andincentivizeagreenrecoverywhileacceleratingdecarbonization.ItwashostedbyCleantech21andCitizens’ClimateInternational,incollaborationwiththeInternationalClimateIncomeAllianceandCPLC.JULY2021SideeventAcceleratingCarbonNeutralityinChinathroughCarbonPricingandCarbonAccountingStrategiesThisofficial,virtualsideeventtotheUNFCCCAsiaPacificClimateWeek2021examinedtheroleofcarbonpricinginincentivizingsectoraltransformationandfacilitatinginvestmentindecarbonizationtechnologiesasChinatransitionstolow-andzero-carbondevelopment.CPLCACTIVITIESInadditiontolaunchingtheTaskForceonNetZeroGoalsandCarbonPricing’sfindingsreport,weworkedtoexpandtheCPLC’smembershipbasewhilemaintaininganddeepeningengagementwithexistingpartners.Partnerengagementsandknowledge-sharingeventsJANUARY2022CPLCAllPartnersCallThevirtualeventwasopentoCPLCpartnersfromallsectors.MARCH2022SideeventDecarbonizationthroughtheCircularCarbonEconomy:TheRoleandImpactofCarbonMarketsThissideeventtotheMENAClimateWeekdiscussedthepotentialofcarbonpricingpoliciestodrivedecarbonizationatscale.Seepage17formoreoncarbonpricinginMENA.MARCH2022WebinarCorporateCarbonPricinginIndiaTheCPLCandCDPIndiaco-hostedaseriesofwebinarsoninternalcarbonpricingasaplanningandmitigationtoolforcorporatesinabroadersocialcontextofdecarbonization.41CPLCACTIVITIESSEPTEMBER2021LaunchThereportoftheTaskForceonNetZeroGoalsandCarbonPricingwaslaunchedinavirtualeventduringthe2021NYCClimateWeek.Seepage10formoreonthekeymessagesfromthereport.JULY2021OCTOBER2021Regionalevent:LatinAmericaLeadershipDialogueonNetZeroGoalsandCarbonPricingThisleadershipdialogue,whichwasheldinSpanish,broughttogetherTaskForceco-chairMauricioCárdenasofColumbiaUniversityandformerCPLCHigh-LevelAssemblyco-chairJuanCarlosJobettodiscussnetzerogoalsintherun-uptoCOP26.DECEMBER2021LaunchinChinaTheReportoftheTaskForceonNetZeroGoalswaslaunchedinChinaonDecember30,2021,ataneventhostedinpartnershipwiththeGovernmentofChinaandtheVankeGroup.ReportoftheTaskForceonNetZeroGoalsandCarbonPricingeventsAngelaChurieKallhauge,theformerheadoftheCPLCSecretariat,makesavirtualpresentationatthelaunchoftheReportoftheTaskForceonNetZeroGoals.42CPLCACTIVITIESMAY2021CPLCHigh-LevelPlenaryTheCPLCHigh-LevelPlenary,heldduringtheInnovate4Climateevent,broughttogetherministers,chiefexecutives,andclimateexpertstodiscussthefindingsoftheCPLCTaskForceonNetZeroGoalsandCarbonPricinganddebatehowcarbonpricingcanbeadriverofasociallyjust,low-carbontransition.NOVEMBER2021COP26eventsTheCPLChostedandco-hostedthreehigh-leveleventsduringCOP26inGlasgowwiththeaimofelevatingtherolethatstringentcarbonpricingsystemswillplayinachievingglobalnetzeroemissions.Theseeventsfocusedonkeyaspectsrelatingtothecontextofnetzeroandtheroleofcarbonpricingpoliciesandmeasures,withsomeeventsfeaturingcasestudiesatthenationalandsubnationallevels.IssuesrelatingtoArticle6oftheParisAgreementandensuringtransparencyandcredibilityinthevoluntarymarketswerealsodiscussed.High-leveldialoguesandplenaries43OURPARTNERSOurpartnersWeareproudtohave321partnersfromallsectors.36GOVERNMENTPARTNERS(includingstate-ownedentities)AlbertaAndorraBelgiumBritishColumbiaCaliforniaCanadaChileColombiaCostaRicaCôted’IvoireDelhiMetroRailCorporationLtd.DenmarkEthiopiaFinlandFranceGermanyIndianRailwaysItalyJapanKazakhstanMexicoMoroccoTheNetherlandsNewZealandNorthwestTerritoriesNorwayOntarioPakistanPanamaPortugalQuébecSingaporeSpainSwedenSwitzerlandUnitedKingdom181PRIVATESECTORPARTNERSAbengoaAccionaACTFinancialSolutionsAECOMAGLEnergyAimiaAirCanadaAlessandriALLCOTGroupAlliedCrowdsAMATAAMEAPowerAngloAmericanAP4ArvindAtmoterraAtosSEAXAB12BakerMcKenzieBankAustraliaBarcoNVBarrickGoldCorporationBearfeldtGmbHBGGroupBHPBillitonBirdConstructionBlackstoneEnergyServicesInc.BMOFinancialGroupBNPParibasBPBraskemBroadGroupBTGroupCáliddaCanadianTireCorporationCarbonEngineeringCarrefourCatalystPaperCorporationCementAssociationofCanadaCemexCenovusEnergyInc.CIBCClimateFocusCoca-ColaHBCAGColbúnCommerzBankConocoPhillipsCOPENORCowayCPFLEnergiaDAIGlobalDalmiaCementDanfossDanielsPowerCorporationDAOIntegralPlatformforClimateInitiativesDesjardinsGroupDNVGLDraxGroupEcoActInc.EcofrotasECOTIERRAEDP–EnergiasdePortugalS.A.EkbdConsultEKIEnergyServicesLtd.ÉlectricitédeFranceEllisDonEN+GroupEnaexEnagásEnbridgeEnelEngieEniEnvironmentFirstEnergyServicesPrivateLimited(EESPL)Equinor(formerlyStatoil)EskomEYFerrovialFortumGarantiBankGet2CGlobalEnvironmentalMarketsGodrej&BoyceMfg.Co.Ltd.GolLinhasAéreasInteligentesGroupeADP44OURPARTNERSGrupoFinancieroBanorteSABdeCVHindustanConstructionCompanyHSBCIberdrolaICFInternationalIKEACanadaInfigenEnergyInfiniteSolutionsInfosysKeyassociadosKrugerInc.LafargeHolcimLATAMAirlinesGroupLibélulaLloyd’sRegisterLoblawCompaniesLimitedMahindraManGroupMexiCO2MichelinMilbankMottMacDonaldNationalAustraliaBankNaturaNatureBankNaturgyEnergyGroup(formerlyGasNaturalFenosa)NavigantNaxRoNEASEnergyNEIInvestmentsNestléNouveauEnergyManagementNovartisNovozymesObrascónHuarteLain(OHLGroup)OntarioPowerGenerationOriginEnergyPaperExcellencePerspectivasPerspectivesClimateGroupGmbHPG&EPoch(WSP)PollinationPortafolioVerdePowerledgerPredictAbilityLimitedRabobankRedshawAdvisorsResoluteForestProductsInc.RoyalBankofCanadaRoyalDSMRoyalPhilipsRUSALSaint-GobainSchneiderElectricScotiabankŞekerbankShellShellCanadaSiemensAGSindicatumSinoCarbonSkyPowerSodimacSolvaySouthPoleGroupS&PGlobalSSEStandardCharteredBankStarRapidStatkraftSuez(formerlySuezEnvironnement)SuncorEnergySweepTataGroupTCEnergyCorporationTeckResourcesTELUSTheAfricanStoveCompanyTheCarbonTrustTheClimateSolutionsGroupTheCo-operatorsGroupLimitedToronto-DominionBankGroupTotalTrucostUkrgasbankUnileverValeSAVenaEnergyVeoliaVestasViñaConchayToroVisãoSustentávelYesBankZenithBank104STRATEGICPARTNERSABIQUIM-BrazilianChemicalIndustryAssociationAfricanEnergyChamberAmericanSustainableBusinessCouncilArborDayFoundationAsiaSocietyPolicyInstituteBCSDPortugalBrazilianAgriculturalResearchCorporation(Embrapa)BrazilianAssociationofAirlines(ABEAR)BrazilianTreeIndustry(IBA)BSRCarbonMarketInstituteCarbonMarketWatchCaringforClimateCDPCEBDSCenterforCleanAirPolicyCenterforClimateandEnergySolutions(C2ES)CentreforClimateEngagementatUniversityofCambridgeCentreforEuropeanPolicyStudiesCeresChildren’sInvestmentFundFoundation(CIFF)ChinaLowCarbonNetworkCII-ITCCentreofExcellenceforSustainableDevelopmentCitizens’ClimateLobbyCleanProsperityCleantech21ClimateLeadershipCoalitionClimateMarketsandInvestmentAssociationClimateNeutralClimateOutreachClimateSolutionsGroupLtdClimateStrategiesClimateTransparencyInitiativeClimateXChange45OURPARTNERSCoalitionforRainforestNationsColumbiaUniversitySIPACenteronGlobalEnergyPolicyConservationInternationalDukeUniversityNicholasInstituteforEnvironmentalPolicySolutionsEastAfricanAllianceonCarbonMarketsandClimateFinanceEntreprisespourl’EnvironnementEnvironmentalDefenseFundERCSTEuropeanBankforReconstructionandDevelopmentFundaciónNaturaGeorgeWashingtonUniversity,EnvironmentalandEnergyManagementInstituteGlobalGreenGrowthInstituteGlobalMaritimeForumGoldStandardFoundationGroupedeTravailClimatREDDHagaInitiativeI4CEIDEAcarbonIETAIFCInstituteforGlobalEnvironmentalStrategiesInstitutoEthosInternationalCarbonActionPartnership(ICAP)InternationalCenterforTradeandSustainableDevelopmentInternationalMonetaryFund(IMF)JapanClimateLeadersPartnership(Japan-CLP)Klimaatplein.comMassachusettsInstituteofTechnology(MIT)NationalBusinessInitiativeOrganisationforEconomicCo-operationandDevelopment(OECD)PembinaInstitutePutaPriceonIt,D.C.RussianCarbonFundSecondNatureSekemGroupShaktiSustainableEnergyFoundationSolutionsforOurClimateStockholmEnvironmentInstituteSustainableCommunitiesIndiaPvtLtdSvebio,theSwedishBioenergyAssociationSwarthmoreCollegeTAPPCoalitionTheBTeamTheClimateGroupTheClimateTrustTheConfederationofDanishIndustryTheGenerationFoundationTheInstitutionalInvestorsGrouponClimateChangeTheNatureConservancyThePrinceofWales’sCorporateLeadersGroupTheShiftProjectTheUnionofConcernedScientistsTheUniversityoftheSouthPacificTheWorldBankGroupTheZeroCarbonCampaignTrueAnimalProteinPriceCoalitionUNICAUnitedCitiesandLocalGovernmentsofAfricaUnitedNationsFoundationUnitedNationsGlobalCompactUnitedNationsGlobalCompactSingaporeUniversityCollegeLondonVerraWBCSDWeMeanBusinessWestAfricanAllianceonCarbonMarketsandClimateFinanceWorldBioenergyAssociationWorldEconomicForumWorldResourcesInstituteWWFYaleUniversityCPLC-SINGAPOREPARTNERSIn2021,CPLCSingaporeengaged197companiesandupskilled333staffinemissionsawarenessandknowledge.17LifeworksPteLtdAccudyneIndustriesAsiaPteLtdAcktecTechnologiesPteLtdActionImpactPteLtdAcuitasPteLtdAkzoNobelPaints(Singapore)PteLtdAMFSPteLtdAndercoPteLtdAntsInnovatePteLtdAsiaPulpandPaperCompanyLtdAssociationofProcessIndustry(ASPRI)AvantProteinsPteLtdBaliGrovePteLtdBarghestBuildingPerformancePteLtdBeniWarehousingPteLtdBHGlobalCorporationLtdBigBangSeabreezePteLtdBiophilicPteLtdBlueWavesFoodEmiprePteLtdBNPParibasBoilerMasterPteLtdBokSengLogisticsPrivateLimitedBrightreePteLtdBrowzwearSolutionsPteLtdCapellaHotel,SingaporeCarbonCareAsiaPteLtdCentreforBusinessSustainability,NanyangTechnologicalUniversity(NTU)ChangiAirportGroup(Singapore)PteLtdCityDevelopmentsLimited(CDL)ClimateResourcesExchangeInternationalPteLtd(CRX)CoastesPteLtdContactSenseAsiaPteLtdContainersPrintersPteLtd46OURPARTNERSCoolingLabPteLtdDanfossIndustriesPteLtdDesireLinesPteLtdDiviGasPteLtdDSMSingaporeIndustrialPteLtdDurapowerHoldingsPteLtdDyna-MacEngineeringServicesPteLtdDynamicCapitalGrowthPteLtdEcoSenseEnviroSolutionsPteLtdecoSPIRITSPte.LtdengecoPteLtdEngHupShippingPteLtdENGIEAsiaPacificETHEnterprisePteLtdEvercommSingaporePteLtdExxonMobilAsiaPacificPteLtdFOCSentosaFuturusConstructionGAC(Singapore)PteLtdGogreenHoldingsPteLtdGreenpac(S)PteLtdGuavaAmenitiesPteLtdHashstacsPteLtd‘STACS’HerculeanClimateSolutionsHydratechIndustriesPteLtdHydrogenandFuelCellAssociationofSingapore(HFCAS)IBCSolarEnergyPteLtdICFInternationalPteLtdidstatsResearchPteLtdIHIAsiaPacificPteLtdInnovate360PteLtdInsectFeedTechnologiesPteLtdInterfaceSingaporePteLtdiWowTechnologyPteLtdJetaimePerfumeryPteLtdJurongPortPteLtdLendleaseSingaporePteLtdLYSEnergySolutionsPteLtdMarquisEnergyGlobalPteLtdMatexInternationalLimitedMaximatorFarEastPteLtdMEPSystemsPteLtdMerlinEntertainmentsSingaporePteLtdMermaidVenturesPteLtdMolyWorksMaterialsPteLtdMordecInternationalPteLtdMountFaberLeisureGroupMTQMunSiongEngineeringLimitedN&EInnovationsPteLtdNgoChewHongEdibleOilPteLtdNittoDenko(Singapore)PteLtdNorthmoreGordonPteLtdOasiaResortSentosaOceanMasterEngineeringOlamCocoaPteLtdOnestopPteLtdOvolSingaporePteLtdP99PteLtdPenguinInternationalLimitedPetrochemicalCorporationofSingaporePteLtdPrestigeTechnology(S)PteLtdPricewaterhouseCoopersLLPSingaporePrincetonDigitalGroup(Singapore)SG1PteLtdPSAInternationalQuestVenturesRHTGreenPteLtdRightPeopleRenewableEnergy(RPRE)Sasha'sFineFoodsSaveACrustPteLtd(CRUSTGroup)SeatechSolutionsInternational(S)PteLtdSeatobagPteLtdSembcorpIndustriesLimitedSentosaGolfClubSEPPUREPteLtdShiokMeatsPteLtdSingaporeInstituteofTechnologySingaporeTelecommunicationsLimited(Singtel)SocieteGeneraleSolarisStrategiesSingaporePteLtdSophie’sBionutrientsPteLtdSouthPoleCarbonAssetManagementSpaceAgeLabsPteLtdSparkSystemsPteLtdStarHubStemcellUnitedPteLtdStrategicMarine(S)PteLtdSWTSPteLtdTanjongPagarTownCouncilTembusuAsiaConsultingPteLtdTheBarracksHotelSentosaTheOutpostHotelSentosaT-RECs.aiPteLtdTRIAPteLtdTRIRECHoldingPteLtdTrucost(partofS&PGlobal)Tru-MarinePteLtdTuffChemEnvironmentalServicesPteLtdTurtleTreeLabsPteLtdUglyFoodPteLtdULVerificationServicesPrivateLimitedUmamiMeatsPteLtdUnaBizPteLtdUnileverAsiaPteLtdUniweldProducts(USA)PteLtdVac-TechEngineeringPteLtdVictoryPteLtd(previouslyVictoryPetroleumTradingPteLtd)VillageHotelSentosaViswalabSingaporePteLtdVolveSolutionsPteLtdWholesomeSavourPteLtdWilhelmsenShipsService(S)PteLtdWSingaporeSentosaCoveHotelZilingoPteLtd1818HStNW,Washington,DC20433www.carbonpricingleadership.orgcplcsecretariat@worldbank.orgCARBONPRICINGLEADERSHIPREPORT2021/22

1、当您付费下载文档后，您只拥有了使用权限，并不意味着购买了版权，文档只能用于自身使用，不得用于其他商业用途（如 [转卖]进行直接盈利或[编辑后售卖]进行间接盈利）。
2、本站所有内容均由合作方或网友上传，本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺！文档内容仅供研究参考，付费前请自行鉴别。
3、如文档内容存在违规，或者侵犯商业秘密、侵犯著作权等，请点击“违规举报”。

碎片内容

碳中和的最新文档