Montreux, Switzerland, 19 April 2018: Today, the World Business Council for Sustainable Development (WBCSD) released a new in-depth guide for policymakers on carbon pricing. The organization and its members believe that carbon pricing is one of the most efficient means of driving the transition to a low-carbon world.
As an increasing number of jurisdictions have adopted or are considering adopting carbon pricing, this document focuses on the “what” and “how” of implementing a carbon price, rather than the “why.” In doing so, it aims to guide policymakers who are considering carbon pricing mechanisms on key design principles.
“We believe the time for debating the need for carbon pricing is over, now is the time for the business community to push for policies that place a cost on CO2 emissions,” said Peter Bakker, President and CEO at WBCSD. The guide released today is an important step in the right direction.
Strong business leadership will continue to accelerate implementation of climate action, but collaboration between business and government - also on policy- is a necessary enabler for scaling climate action across the world.
“Carbon pricing is an accepted concept for managing carbon emissions and many jurisdictions are looking to implement one instrument or another,” said Rasmus Valanko, Director of Climate & Energy at WBCSD. “We want to take the discussions to the next level of detail, helping policymakers with the choices they need to make.”
Today’s new insight aims to spur more detailed discussions between policymakers and business leaders on how best to implement a carbon price to incentivize low-carbon innovation and investment, and create a level playing field for meeting the 2°C objective in a sustainable way.
Based on company experience, the document concludes with five reasons for policymakers to adopt carbon pricing:
- Lowest-cost pathway
- Technology neutrality
- Transparency and burden-sharing
- Long-term signals encouraging development
Business looks forward to dialogue with policymakers to find the most suitable and expedient path to establishing carbon pricing and steps towards a global carbon market over the course for 2018.