Resource Library


The Carbon Pricing Leadership Coalition aims to collect and facilitates access to up-to-date information that is tailored for policy makers and business leaders and practitioners on current and emerging practice in pricing carbon design and implementation, market trends, opportunities and trade-offs. 

Carbon Pricing Watch 2017

State and Trends of Carbon Pricing 2016

Greater cooperation through carbon trading could reduce the cost of climate change mitigation by 32 percent by 2030. New modelling analysis undertaken for the State and Trends of Carbon Pricing 2016 report shows that increased international carbon trading could enable large-scale emissions reductions at much lower cost than at present, based on the carbon mitigation goals spelled out in countries’ national climate plans under the Paris Agreement - the Nationally Determined Contributions, or NDCs.  By the middle of the century, an international market has the potential to reduce global mitigation costs by more than 50 percent.  

FASTER Principles for Successful Carbon Pricing

The “FASTER” principles presented in this report lay out an approach that focuses on the emerging design features for successful and cost-effective carbon pricing policies drawn from initial and growing experience around the world. By maintaining a focus on fairness, alignment with existing policies, stability, transparency, efficiency, and reliability, the FASTER principles show that a well-designed carbon pricing instrument can provide the flexibility, and certainty for a thriving business, and investment climate, while effectively reducing emissions. Case studies provide concrete examples of how the principles are being implemented in practice.

Impacts Of A Global Carbon Price On Consumption And Value Creation
Implications For Carbon Pricing Design

For carbon pricing to cost-effectively support decarbonisation, it is essential to incentivise higher GHG productivity throughout global value chains. This is one of the findings presented by Ecofys and The Generation Foundation during the COP 22 in Marrakech. The study is the first released under the Carbon Pricing Unlocked partnership.

Valuation of Energy Costs in the Indian Context: A Survey Based Study of Select Indian Corporates

The TERI Council for Business Sustainability (a consortium of Indian industries) undertook a study on ‘Valuation of Energy Costs in the Indian Context’ along with CPLC and the World Bank Group, with the objective of gauging corporate sector’s preparedness in undertaking internal carbon pricing. The three phase project included extensive corporate consultations and deliberations, with 100+ business leaders on internal carbon pricing, its challenges, opportunities and possible methods of introducing carbon pricing among Indian businesses. These companies represented cement, oil and gas, chemical, automobile, textile, construction, IT, banking, power, manufacturing and mining sectors. A questionnaire was circulated among the industries and it was interesting to find that about 17% were already pricing carbon internally and another 40% were planning to do so in the next 1-2 years. A status report (outline paper) detailing about this enormous opportunity in India was tabled at the first edition of the World Sustainable Development Summit, in New Delhi, on Oct 5, 2016. The deliberations happened during a focused group meeting followed by plenary session on the business day of the summit, focusing on peer learning and experience sharing among the corporate sector on carbon pricing. The momentum on internal carbon pricing is rising among Indian Inc as they see it as a good tool to make their investments future proof; yet there is a need for hand-holding for improved technical understanding in arriving at the ‘right price’ of carbon emissions and adoption of the carbon pricing process. 

 

Competitiveness and Carbon Leakage

What is the Impact of Carbon Pricing on Competitiveness?
Japanese version (Carbon Pricing Leadership Coalition, 2016)

Carbon pricing, Competitiveness and Carbon Leakage: theory, evidence and policy design
(World Bank, 2015)

Impacts of Carbon Prices on Indicators of Competitiveness: A Review of Empirical Findings
(OECD, 2015)

Carbon Pricing & Addressing Competitiveness
(IETA, 2015)

Environment and trade: Do stricter environmental policies hurt export competitiveness?
(OECD, 2016)

Empirical Evidence on the Effects of Environmental Policy Stringency on Productivity Growth
(OECD, 2014)


Use of Revenues

What are the Options for Using Carbon-Pricing Revenues
Japanese version (Carbon Pricing Leadership Coalition, 2016)

The Investment of RGGI Proceeds through 2014 Regional Greenhouse Gas Initiative (RGGI, 2016)

Carbon pricing: how best to use the revenue?
(Grantham Institute, GGGI, 2015)

Two World Views on Carbon Revenues
(Resources for the Future, 2013) 

Carbon Fee and Dividend Explained  (Citizens Climate Lobby, 2016)

Better Growth Better Climate
(New Climate Economy, 2014)

How to Use Carbon Tax Revenues
(Tax Policy Center, 2016)

Choose Wisely: Options and Trade-Offs in Recycling Carbon Pricing Revenue 
(Canada Eco-Fiscal Commission)

British Columbia’s Revenue-Neutral Carbon Tax: A Review of the Latest “Grand Experiment"
(Nicholas Institute and University of Ottawa Institute of the Environment, 2015)  

Recycling carbon revenues: Transforming costs into opportunities
(I4CE, 2016) 

Carbon Pricing Revenues
(CMIA, 2015) 

Policy Alignment

How can Carbon Prices and Policies be effectively aligned? (Carbon Pricing Leadership Coalition, 2016)

Climate and Carbon: Aligning prices and Policies
(OECD, 2013)

Aligning Policies for a Low-carbon Economy
(OECD/IEA/NEA/ITF, 2015)

The FASTER Principles for Successful Carbon Pricing: An approach based on initial experience
(OECD/World Bank Group, 2015)


Business &
Carbon Pricing

Three notes on the management of climate-related risks by financial actors (I4CE, 2017)

Carbon Market Readiness Training Guide  (IETA, B-PMR, 2017)

Internal Carbon Pricing, A Growing Corporate Practice (English and French, EpE, I4CE, 2016)

Carbon Pricing: what the business sector needs to know to position itself (CEBDS and CDP, 2016)

Embedding a Carbon Price Into Business Strategy (CDP, 2016)

Executive Guide to Carbon Pricing Leadership
(UN Global Compact, WRI, 2015)

Shifting the carbon pricing debate: Emerging business attitudes fuel momentum for global climate action
(EY, 2015)

Putting a price on risk: Carbon pricing in the corporate world
(CDP, 2015)

Emerging Practices in Internal Carbon Pricing
(WBCSD, 2016)

Investing in a Time of Climate Change  
(Mercer, 2015)

Corporate Use of Carbon Prices: Commentary from Corporations, Investors and Thought Leaders 
(CDP, 2014)

Preparing for Carbon Pricing: Case Studies from Company Experience - Royal Dutch Shell, Rio Tinto, and Pacific Gas and Electric Company 
(Partnership for Market Readiness, 2015)

Climate Action and Profitability: CDP S&P 500 Climate Change Report 2014 
(CDP, 2014) 

Markets Matter: Greenhouse Gas Markets 2014 
(IETA, 2014)

Caring for Climate Business Leadership Criteria on Carbon Pricing
(UN Global Compact, 2014)

 

 

 

BACKGROUND NOTES

Background Note: Carbon Pricing Readiness

As countries construct their 2030, 2040, and 2050 greenhouse gas mitigation scenarios, they have increasingly identified cost-efficient policies, including carbon pricing instruments, as essential elements of proposed climate action. Countries’ activities in this regard differ based on their unique circumstances, and range from improving “carbon pricing readiness”  to designing and piloting various carbon pricing instruments. This note provides updates on countries' activities.  

Background Note: Corporate Action for Putting a Price on Carbon

Companies in a diverse range of sectors see carbon pricing as the most efficient and cost-effective means of tackling the climate challenge. Many companies are voicing support for government action to put a price on carbon. Many also assign a price on carbon internally.

Background Note: ETS

An ETS is an explicit carbon pricing instrument that limits or caps the allowed amount of greenhouse gas emissions and lets market forces disclose the carbon price through emitters trading emissions allowances.

Emissions Trading 101 Library 
(IETA, 2015)

States and Trends of Carbon Pricing 2015

As seen at the Paris climate change conference, there is clear evidence of growing momentum to put a price on carbon. The growth of carbon pricing around the world has been substantial. Since January 2012, the number of carbon pricing instruments already implemented or scheduled for implementation has almost doubled, jumping from 20 to 38. Moreover, the share of emissions covered by carbon pricing has increased threefold over the last decade.