Climate Leadership Coalition, Haga Initiative and Skift Business Climate Leaders supported by Corporate Leaders Group Europe, BCSD Portugal and CER – Sustainable Business Network Slovenia, have launched an initiative to ramp up climate investments and effective carbon pricing.
Today, only a quarter of global greenhouse gas emissions are covered by carbon pricing initiatives, and a fraction of those are within the recommended range for the Paris agreement. Direct fossil fuel subsidies are a tenfold higher and the indirect costs of fossil combustion and the impacts magnified by climate change a hundred times bigger than the revenues raised by the carbon pricing.
We now need a step change. We are only one investment cycle away from 2050 and this is likely to be the last chance to get the policies right. We urge countries to act on this during this year 2021. This would support COP26 in Glasgow and make it a true game changer.
The signatories call for countries to:
1. back their net zero targets with Paris Agreement consistent effective, robust, reliable and fit-for-purpose carbon pricing instruments which will facilitate a cost-efficient investment path to reach net zero,
2. align their carbon pricing instruments where appropriate between countries to create a stable and predictable investment environment and
3. finalize the rules for the international market mechanism under Article 6 of the Paris Agreement to support cost-effective mitigation efforts, create a level playing field and minimize carbon leakage, while enabling greater ambition.