Joint Report Explores Scope for Coordinated Approaches on Local weather Motion, Carbon Pricing, and Coverage Spillovers
Washington, D.C, October 24, 2024- 5 worldwide organizations launched on 23 October a landmark report that outlines pathways for coordinated approaches on local weather motion, carbon pricing, and the cross-border results of local weather change mitigation insurance policies with a view to reaching international local weather objectives.
The report was offered on the twenty third of October by the Joint Job Drive on Local weather Motion, Carbon Pricing, and Coverage Spillovers, convened by the World Commerce Group and joined by the Worldwide Financial Fund, the Organisation for Financial Co-operation and Growth, United Nations Commerce and Growth (UNCTAD), and the World Financial institution.
Entitled “Working Collectively for Higher Local weather Motion: Carbon Pricing, Coverage Spillovers, and International Local weather Targets,” the report arrives at a time when nations all over the world are scaling up actions to curb local weather change. Mitigation insurance policies are on the rise, together with carbon pricing insurance policies, with 75 carbon taxes and emission buying and selling schemes at present in impact worldwide, masking roughly 24 % of world emissions
The report stresses that local weather motion must be stepped as much as meet international emission discount targets, whereas contributing to broader growth objectives. It additionally makes 4 necessary contributions to that finish:
- The report offers a typical understanding of carbon pricing metrics to enhance transparency on how nations are shifting incentives for decarbonization.
- The report examines the composition of local weather change mitigation insurance policies, emphasizing the necessary position of carbon pricing as a cheap instrument that additionally raises revenues.
- It outlines how worldwide organizations can help the coordination of insurance policies to foster optimistic and restrict unfavourable cross-border spillovers from local weather change mitigation insurance policies. The report additionally analyzes the benefits and downsides of carbon border adjustment insurance policies, together with their affect on creating nations.
- It reveals how such coordination can assist to scale up local weather motion by closing the transparency, implementation, and ambition gaps.
The report additionally makes clear that worldwide organizations’ future work can assist fill necessary data gaps. These embrace a necessity for extra granular and higher information on embedded carbon costs and embedded emissions, the design of border adjustment insurance policies and their interoperability, and different approaches to reinforce cooperation to extend ambition and guarantee a simply transition for all.
WTO Director-Basic Ngozi Okonjo-Iweala stated: “Commerce-related local weather insurance policies are on the rise, with over 5,500 measures linked to local weather targets notified to the WTO from 2009-2022. Such insurance policies result in cross-border spillovers which may improve commerce tensions and retaliatory commerce actions. Future work by worldwide organizations ought to concentrate on concrete methods to return to the coordination of extra bold carbon pricing insurance policies which assist to shut the local weather motion hole and tackle their cross-border spillovers. This may increasingly require a framework to make sure interoperability between carbon pricing and different local weather mitigation insurance policies.”
IMF Managing Director Kristalina Georgieva stated: “This joint report of the 5 establishments highlights why carbon pricing and equal insurance policies are necessary to scale up local weather motion. International emissions should be reduce urgently to place the world on monitor to realize the Paris objectives and international ambition must be doubled to quadrupled. Carbon pricing must be an integral a part of a well-designed coverage combine, complemented with public funding help and sectoral insurance policies, and worldwide coordination on mitigation motion may unlock progress.”
OECD Secretary-Basic Mathias Cormann stated: “International locations at present take totally different approaches to cut back emissions, however reaching internet zero requires us to align these efforts for a really international affect. The OECD’s Inclusive Discussion board on Carbon Mitigation Approaches, now with 59 members, is bringing collectively nationwide views and constructing a typical understanding of local weather insurance policies and their results. Extra coherent and better-coordinated international mitigation insurance policies can assist stop unfavourable cross-border impacts akin to carbon leakage or commerce distortions, whereas maximizing alternatives for innovation, price financial savings and shared advantages from the local weather transition.”
UNCTAD Secretary-Basic Rebeca Grynspan acknowledged: “To make sure a simply and inexperienced transition, UNCTAD encourages and helps creating nations in crafting the precise coverage combine to advance local weather mitigation. We’re strengthening our analysis and offering a secure house for dialogue to make sure that climate-related measures, together with Border Carbon Changes mechanisms (BCAs) are proof based mostly and decrease unfavourable spillovers on creating nations and different sustainable growth objectives. That is particularly important for much less superior economies, which frequently have restricted productive capability, infrastructure for monitoring, verification, reporting, and financial house. We’re dedicated to serving to creating nations decarbonize and diversify their economies by seizing environmental-related export alternatives and dealing with our member states to cut back the compliance and commerce prices related to these transitions.”
Axel van Trotsenburg, World Financial institution Senior Managing Director, stated: “By means of its technical help and financing, the World Financial institution helps nations make certain local weather insurance policies are tailor-made to every nation’s context, capacities, political constraints, and growth priorities. We expect carbon pricing can play a central position in these insurance policies, as a result of it offers the precise incentive for the non-public sector and creates public revenues to help broad growth progress and assist susceptible populations handle the inexperienced vitality transition. However with each nation introducing their very own local weather insurance policies, there’s additionally a rising want for extra cooperation and coordination. The product of in-depth exchanges throughout 5 worldwide organizations, this report offers concrete concepts to ensure local weather insurance policies are designed in ways in which profit lower-income economies and assist them speed up their growth, create jobs, and take part in international worth chains.”
The report is accessible right here.
For extra data, please contact:
In Washington: Melissa Bryant,+ 1 202 891-9397, mbryant@worldbankgroup.org
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