Carbon Pricing Spreads Globally, But Bolder Action Needed to Meet Climate Goals

A quarter of global emissions are now covered by carbon pricing schemes, up from just 5% in 2010. More countries are adopting carbon prices.
Carbon pricing spreads through governments creating new markets, established markets expanding their scope, and cross-border linkages between schemes.
The EU Emissions Trading System is expanding to cover more sectors and will start taxing imports through its Carbon Border Adjustment Mechanism.
Many Asian carbon pricing schemes have flaws like low prices, but they still encourage emissions monitoring. Firms face pressures like EU CBAM.
Carbon pricing is spreading but needs to become more ambitious and intrusive to sufficiently tackle emissions. Voters must be won over for this to happen.

economist.com

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Posted 10/1/2023, 5:08:25 PM