· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on the World Economic Forum or enjoy below:
🗞️ Driving the news: Carbon pricing, a critical tool to combat climate change, currently covers only 24% of global emissions
• A multilateral carbon pricing system is proposed to bridge gaps in ambition, capacity, and enforcement, combining regional systems and incentivizing global participation
• Private sector engagement and equitable approaches are essential for its success
🔭 The context: Existing mechanisms like the EU Emissions Trading System and national carbon markets have raised over $100 billion in revenue, demonstrating potential
• However, disparities in design, trade fairness concerns, and the need for broader adoption hinder global impact
• Multilateral approaches can harmonize systems but face challenges like geopolitical tensions and equity issues for developing nations
🌍 Why it matters for the planet: A unified carbon pricing system could significantly reduce emissions while funding climate action, particularly in developing nations
• It would mitigate carbon leakage, incentivize low-carbon transitions, and align global efforts toward the 2050 net-zero target
⏭️ What's next: A phased roadmap suggests setting minimum standards, linking regional systems, implementing CBAMs, expanding private sector participation, and ensuring equity
• Multilateral cooperation and initiatives like Article 6 of the Paris Agreement could catalyze global adoption and integration
💬 One quote: “Private sector involvement is key to meeting the $1.3 trillion per year needed by 2035 for climate action in developing countries,” highlights the World Economic Forum
📈 One stat: Carbon pricing systems raised over $100 billion globally in 2023, driven by high EU carbon prices
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