World Bank President Advocates Putting a Price on Carbon

Many believe that putting a price on carbon is the best way to combat climate change. Now the chorus of those calling for just that has been joined by World Bank President Jim Yong Kim. He recently urged the world’s environmental ministers to implement a five-point plan that includes putting a price on carbon dioxide emissions, improving agricultural practices and ending fossil fuel subsidies.

Kim urged more countries to roll out price mechanisms either through a tax on carbon, indirect taxation, regulation or creation of a carbon market.

Kim made the remarks to 30 of the world’s environment ministers gathered in Berlin for informal talks on a new global climate deal to take effect in 2020.

The European Union’s Emissions Trading Scheme is struggling with low prices and may require action from EU policymakers. German Chancellor Angela Merkel has said the EU should take action on a plan to postpone the supply of permits.

Conversely, the Easter Regional Greenhouse Gas Initiative (RGGI) is doing much better than their European counterparts.  California’s recent carbon auction fared well and the addition of five Canadian provinces has rejuvenated the Western Climate Initiative (WCI). The five Canadian provinces replace six US states (New Mexico, Arizona, Washington, Oregon, Montana and
Utah) that abandoned the WCI making it the biggest North American carbon trading market by value.

Overall the North America carbon trading market doubled in 2012 with the inauguration of
carbon markets in California and Quebec.

© 2013, Richard Matthews. All rights reserved.

Related Posts
European Parliament Revives Cap-and-Trade
Carbon Pricing and Emissions Trading a Global Review
RGGI is Increasing Renewables while Reducing GHGs and Spurring Economic Growth
The Success of RGGI Carbon Trading Shows Cap-and-Trade Works
Video – What are the benefits of a carbon price?
Video – How does carbon pricing work?
Video – A Price on Carbon in 5 Easy Steps
Video – The Cost of Carbon
Climate Change Caucus in Washington Breeds Hope for Legislation on Emissions Reduction Perhaps Even Cap and Trade
California’s Cap-and-Trade Leadership
California is Leading the US with a Cap-and-Trade
South Korea Passes Cap-and-Trade Legislation
US Cap-and-Trade Implications for Business
US Cap-and-Trade: What and Why
Small Business Can Save US Cap-and-Trade
US Cap-and-Trade: Obstacles and Solutions
Cap-and-Trade Legislation Faces Opposition
Helping Small Business Accept US Cap-and-Trade
US Cap-and-Trade: Positioning Your Business
The Kochs’ Americans for Prosperity Actively Undermines Cap-and-Trade