20171114-世界银行-State_and_Trends_of_Carbon_Pricing_2017_104页_5mb

Summary of "State and Trends of Carbon Pricing 2017"

Core Content

The State and Trends of Carbon Pricing 2017 report, jointly prepared by the World Bank, Ecofys, and Vivid Economics, provides an updated overview of carbon pricing initiatives at the regional, national, and subnational levels, as well as corporate internal carbon pricing. It also emphasizes the need for an integrated approach to climate finance and climate markets to support the Paris Agreement goals, particularly the aim to limit global warming to well below 2°C and pursue efforts to hold it to 1.5°C.

Main Points and Key Information

1. Carbon Pricing Initiatives

• Global Progress: As of 2017, 67 jurisdictions (representing about half of the global economy and more than a quarter of global GHG emissions) had implemented or planned carbon pricing initiatives.
• Coverage: These initiatives cover about 8 gigatons of CO₂e or 15% of global GHG emissions on average.
• New Initiatives: Since 2016, eight new initiatives have been launched, and two more are scheduled for 2018, bringing the total to 47 initiatives.
• China's ETS: The Chinese national ETS is expected to be implemented by the end of 2017, which will increase the global coverage of carbon pricing to 20–25%.
• Regional Developments:
  • Canada: Implemented a pan-Canadian approach, requiring provinces and territories to have a carbon pricing initiative by 2018.
  • Mexico, Colombia, Chile: Investigating the introduction of ETSs.
  • United States: Federal climate action has been set back, but subnational actions are growing, including Washington State launching a baseline-and-credit ETS and California extending its ETS until 2030.
  • Other Jurisdictions: Alberta and Ontario implemented carbon taxes and ETSs, respectively, in 2017.

2. Corporate Internal Carbon Pricing

• Corporate Adoption: The number of companies reporting internal carbon prices increased by 11% since 2016.
• Recommendations: The Financial Stability Board's Task Force on Climate-related Financial Disclosures recommends that companies disclose climate-related financial risks and opportunities, including internal carbon prices.

3. Climate Finance and Climate Markets

• Integrated Approach: The report advocates for an integrated approach to climate finance and climate markets, combining domestic policies, climate finance, and international market mechanisms.
• RBCF (Results-Based Climate Finance): RBCF is highlighted as a key tool to support the development of climate markets and the transition to an international carbon market.
• RBCF Functionality: Funds are disbursed based on pre-agreed climate results, such as emission reductions or renewable capacity installations.
• RBCF Benefits: It can help build climate markets, support domestic policy processes, and develop monitoring, reporting, and verification systems.

4. Challenges and Barriers

• Competitiveness Concerns: Some domestic industrial sectors may face international competitiveness issues due to carbon pricing, as discussed in previous editions.
• Public Acceptance: Carbon pricing is more effective and acceptable when aligned with the broader policy context.
• International Cooperation: Trust and common standards are essential for linking domestic carbon pricing initiatives and international market mechanisms.
• Double Counting: Accounting rules must avoid double counting to ensure the integrity of climate finance and market mechanisms.

5. Economic and Environmental Impacts

• Investment Needs: To achieve the 2°C target, $700 billion in annual incremental low-carbon investments will be needed by 2030.
• Fiscal Benefits: Carbon pricing revenues can generate significant fiscal benefits and catalyze private sector investment.
• International Carbon Market Potential: An international carbon market by 2030 could mobilize $220 billion annually, which is about one-third of the required incremental investment.

6. Future Directions

• Research and Expansion: The report suggests future research topics, such as the interaction between carbon taxes and fiscal policy.
• Carbon Pricing Dashboard: Launched in May 2017, this interactive tool provides real-time data and visuals on carbon pricing initiatives.

Key Recommendations

• Expand Coverage: Develop new initiatives and broaden GHG emissions coverage in existing ones.
• Raise Carbon Prices: Increase prices to send a stronger price signal and trigger more low-carbon investments.
• Align with Domestic Policies: Ensure carbon pricing is coherent with broader policy frameworks.
• Support International Market Mechanisms: Develop trust and common standards for international cooperation.
• Use Climate Finance Strategically: Combine climate finance with domestic policies and climate markets to catalyze low-carbon investments.

Conclusion

The report highlights the growing momentum for carbon pricing globally and underscores the need to accelerate progress to align with the Paris Agreement goals. It calls for an integrated policy approach that combines domestic carbon pricing, climate finance, and international market mechanisms to achieve both environmental and economic benefits.