I4CE welcomes the conclusions from the report of the High-Level Commission on carbon prices
On May 29th, the High-Level Commission on carbon prices delivered its conclusions in a report dedicated to foster the implementation of carbon pricing policies.
For the Commission, efficient carbon pricing paths begin with a strong price signal in the short term, followed by a credible commitment to maintain long-term prices at a level high enough to produce the necessary changes. However, the appropriate level of carbon prices varies from country to country. The Commission recalls that 87% of global emissions are not tariffed today and that three quarters of the world emissions are covered by a carbon price of less than 10 dollars per tonne of CO2.
The report calls for a sharp increase in the price per tonne of CO2, which is expected to reach at least 40 to 80 dollars in 2020 and then 50 to 100 dollars in 2030, in order to meet the goal of limiting global warming to 2°C as defined by the Paris Agreement. Given the time it takes to set up carbon pricing mechanisms, countries should tackle them now, hammer the authors.