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illuminem summarizes for you the essential news of the day. Read the full piece on Financial Times or enjoy below:
🗞️ Driving the news: At COP28, the spotlight is on the inadequacy of current measures to reduce greenhouse gas emissions. Countries are now considering carbon pricing as a strategy to balance climate objectives with fiscal challenges
• Carbon pricing involves charging polluters for their emissions, either through taxes or emissions trading schemes
🔭 The context: Carbon pricing appeals due to its effectiveness, cost-efficiency, and fairness. It has been successful in reducing emissions in the EU and generates significant revenue which can be used for green initiatives
• Importantly, it can be designed to be equitable, with safeguards for low-income households and contributions to climate finance in developing countries
🌍 Why it matters for the planet: With 73 carbon pricing schemes now covering a quarter of global emissions, there is momentum, but challenges remain
• Achieving significant emission reductions requires raising the global carbon price, currently far below the needed level
• Effective carbon pricing can steer the world away from the business-as-usual approach, which is failing to address the climate crisis adequately.
⏭️ What's next: COP28 is expected to set a strong direction for international carbon markets. For carbon pricing to be truly effective, it must be transparent and designed to genuinely reduce emissions rather than allowing for continued environmental damage under the guise of compliance.
💬 One quote: "We can — and we must — step back from the brink. That means a fair price on pollution to cut emissions for our children and their children, without emptying coffers or fragmenting global trade."
📈 One stat: Since the Paris Agreement in 2015, the number of carbon pricing schemes has doubled, now covering a quarter of global emissions.
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