20% of greenhouse gas emissions derive from carbon prices

In recent statistics, the World bank stated, that carbon prices now hold accountability for over 20% of all greenhouse gas emissions. This is caused by a total of 64 carbon pricing instruments that are now in opera\tion worldwide.

This new data suggests that that the cabon pricing instruments that are now in operation generate an approimate $53 billion in revenue. This is a 17% increase from last year but we are still fairly unsure of of the full potential of carbon pricing.

The growth that we have witnessed over the last year can be largely directed from the uprise in EU allowance prices. The programme currently regulates the caps for emissions and requires additional costs for any counntries that exceed the current limits.

The report also highlights the January 2021, operational launch of China’s national Emissions Trading System (ETS) as well as the forthcoming changes to the EU ETS in line with the European Green Deal recery package.

With initial idea of covering emisions in the power sector, the market will now regulate roughly 4,000MtCO2 or 30% of China’s national emissions.

Due to the programmes short and long term climate ambitions, the EU allowance prices have never been as high as it  currently stands. These prices could even rise again following the announcement of the green deal.

national ETS’s and carbon taxes have also been brought into operation or the Netherlands and Luxembourg by the UK and Germany.

In spite of the large number of carbon pricing instruments in operation, the World Bank is still under the impression that they are still fairly behind in what needs to be acheived for the temperature goals of the Paris Agreement.

Statistics also show that the majority of all carbon prices still stand below the $40 – $80/tC02 reccomendation for 2020 with the aim to meet the Paris climate agreement goal. As it stands, carbon prices in this range cover less than 5% of worldwide emissions.

Bernice Van Bronkhorst, Global Director for Climate Change at the World Bank said: “It is encouraging to see how governments and companies are integrating carbon pricing into their climate strategies. But the potential of carbon pricing is still largely untapped, despite the fact that it can be effective in driving decarbonisation for countries in all stages of development.”

“If implemented carefully, these policies can also be redirected to support lower income communities, getting resources to those who need them the most.”

The increase in prices have also been set in Canada, Germany and Ireland to name a few. New Zealand’s CCA (Climate Change Act) also estalished a national mitigation framework to help maintain current climate policies which included its ETS, in line with the 2050 net zero target.

, , , , , , , , , , , , , , ,
Previous Post
Nuclear waste from Norway will be recycled within the UK
Next Post
Trump Arctic oil & gas leases discontinued by Biden

Related Posts

UK records nearly 1 million fly-tipping occurances last year

UK records nearly 1 million fly-tipping occurances last year: The UK recorded nearly a million fly-tipping incidents in the last 12 months. This is reported by research from the supplier of timber wheelie bin storage units Wheelie Bin Storage, which points out that Leeds is the area with the most reported fly-tipping occurances with nearly…
Read More

Capacity Market in oversupply but predicted to balance out by mid-2020s

Capacity Market in oversupply but predicted to balance out by mid-2020s   Earlier this month, Secretary of State for Business, Energy and Industrial Strategy Greg Clark wrote to the Delivery Body to update the target procurement volumes to 2.7GW, from the 4.6GW initially recommended in 2018, for the replacement T-1 2019-20 capacity auction that is…
Read More
Menu

Subscribe to our newsletter!

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

British Utilities will use the information you provide on this form to be in touch with you and to provide updates and marketing.