State and Trends of Carbon Pricing 2017
Financing the shift to a low carbon energy system will require incremental investments of US$700 billion per year by 2030 worldwide, according to a new report released by the World Bank.
The report, co-authored by Vivid Economics, finds that mobilising these investments will require an integrated policy response that combines domestic carbon prices, other domestic policies, climate finance and international climate markets. Specifically, the report outlines how the two main modalities of international cooperation – climate finance and climate markets – can enable, support and complement domestic policies to mobilise the flow of resources needed to meet the temperature goal of the Paris Agreement.
It discusses the role that results based climate finance (RBCF) can play in transitioning towards such an integrated approach. The integrated approach and the role of RBCF are illustrated through the development of a policy approach capable of accelerating the transition to clean energy.
The report further outlines the development of carbon pricing initiatives over the last year at the regional, national and subnational levels, and finds that despite progress, additional action is necessary for carbon pricing to make a substantial contribution to the Paris Agreement pledge.
Date: November 2017