Ahead of the November 2015 Climate Change Conference in Paris, a global Carbon Pricing Panel has been convened by World Bank President Jim Yong Kim and the International Monetary Fund’s Managing Director, Christine Lagarde to push for pricing of carbon emissions. (Full story)
French lawmakers passed legislation to increase the target price of carbon to 56 euros ($61.48) a ton in 2020 and 100 euros a ton in 2030, The rate, now 14.50 euros a ton, climbs to 22 euros a ton in 2016 and is integrated in a levy on fossil fuels.
This is an example of how a country can integrate fossil-fuel taxes with cap-and-trade (the EU ETS) to hit a price target. (full story)
“All countries are relatively sceptical on international market mechanisms,” said Niklas Hoehne, founding partner of research group NewClimate Institute. “They are open to have national trading mechanisms or national pricing, but to have these mechanisms internationally, there is a lot of reluctance.” Reuters
In other words, they would accept a commitment to a global carbon price, as advocated on this website, because it does not ask countries to trade billions of dollars worth of permits with other countries. They price their own carbon and keep their revenues. But they won’t have random market fluctuations determining when and who they have to pay for permits—international cap and trade.
Currently the leading advocates of the road-blocking cap-and-trade proposal are Jean Tirole (2014 Nobel Prize in Econ) and his fellow economist Christian Gollier. —1 June 2015, in the Economist.
Reuters Carbon pricing will not be on the agenda in Paris (Dec. 2015) because the cap-&-traders have convinced the world that the only path to a global price is international cap and trade. And that would mean there would be huge random payments between countries as they fall short and exceed their targets over a period of 15 years (if Kyoto is any guide).
No, the US does not want to end up sending billions to China because they negotiated a lenient cap. And no China would not want to send billions to India if they had a hard time with their cap and India got the better deal. This kind of international gambling serves no purpose and will never be accepted.
But it would be very easy to set a global price on carbon and let countries implement it their own way and keep any revenues from selling carbon allowances or taxing carbon.
I met with Axel and Andreas on May 6 and 7th and we design a new experiment to test of greater choice (under a quantity approach) makes it harder to cooperate.
PriceCarbon.Info is moving to it’s own website. This will make its URL visible, and gain attention from Google.