Increasing the prices of the carbon market will encourage economic players to adopt less-polluting practices and take the necessary steps to respect the objectives of the Paris Agreement.

 

+ €15

increase of carbon price in the EU ETS in one year

5

mbitious European countries pledging for a significant carbon price

Announcements

Environment and Climate Ministers of France, Germany, the Netherlands, Sweden and the United Kingdom have:

  • Welcomed the recent agreement on the reform of the EU ETS
  • Acknowledged that additional reforms will be needed in the EU
  • Committed to examine, or even implement in some cases, a significant carbon price in relevant sectors 

Accomplishments

  • Due to the vote on the reform of the EU ETS, carbon price has risen from 5 €/t to more than 20 €/t in one year.
  • High level event hosted by France on the 5th of March 2018, with Climate Ministers, or their representatives, of France, Finland, the United Kingdom, Sweden, Germany and the Netherlands, and a Member of the European Parliament, the European Climate Foundation and Eurelectric. 
     

Next Steps

Continue to work with the voluntary  EU Member States to emphasize  the advantages of carbon pricing  and determine how to overcome the difficulties.

  • Achieve a larger price increase  in the EU ETS
  • Promote an increase of carbon pricing (in level and perimeter) in non-ETS sectors
“A well-designed carbon price is an indispensable part of a strategy for reducing emissions in an efficient way.”
Report of the High Level Commission on Carbon Prices, Carbon Pricing Leadership Coalition

22 %

of total emissions in the Americas are part of the Paris Declaration

Announcements

Paris Declaration on Carbon Pricing  of the Americas

  • Signed by heads of state of Canada, Mexico, Chile, Colombia, Costa Rica, and top representatives of subnational governments of California, Washington, Quebec, Ontario, Nova Scotia, Alberta  and British Columbia
  • Commits to promoting carbon pricing both internally and in the context of markets or taxes.
  • Promote common measurement, reporting and verification systems in the context of regional collaboration

Accomplishements

  • Launch of CPA Cooperation Platform with Canada & Mexico as co-Chairs and support of ECLAC & WBG; inclusive at all levels (national, subnational, private sector, civil society)
  • Working Groups established to  advance collaboration through sharing of best practices; regional-focused outreach and joint policy research.
  • Priority areas of WG determined:
    • Common standards, Monitoring  Reporting and Verification(MRV)
    • competitiveness;
    • complementary policies;
    • stakeholder engagement;
    • CPA partners meetings: Chile in January and Mexico in August

Next Steps

  • CPA Paris Declaration remains open for other jurisdictions to join. Ongoing discussions of government partners with, inter alia, Argentina, Peru, and RGGI states;
  • Working Groups established under  the CPA Cooperation Platform fully operational, and delivering on agreed work programs on policy research areas and knowledge sharing (including upcoming CPA webinar series in Nov/Dec 2018).
  • CPA member jurisdictions advance,  as applicable, development or deployment of own carbon pricing mechanisms, e.g., Mexico’s design and piloting of an ETS, Chile’s review and refinement of current carbon tax. 
" Carbon pricing is a critical quantum jump for the much-needed transformation to a low-carbon future. The Carbon Pricing of the Americas platform will unleash market forces to drive climate innovation and solutions. This unique initiative should lead the Global Coalition for Carbon Pricing as was called for in 2015 by the Paris Climate COP President Hollande. "
Ban Ki Moon, former UN Secretary General