Haga Initiative joins international coalition for carbon pricing

The Haga initiative recently joined the Carbon Pricing Leadership Coalition (CPLC), an organization under the World Bank that works to ensure that carbon dioxide emissions are priced on the world market. CPLC has members worldwide, including 26 states and a large number of companies. The coalition is led by Catherine McKenna, Canada’s minister of the environment and climate change, and Gerard Mestrallet, chairman of the French energy company Engie.

CPLC keeps track of where in the world carbon prices are used (see here). When the coalition was founded in 2014, 40 countries and 20 regional governments had a price for carbon dioxide, covering 12 percent of global emissions. At the beginning of 2018, 15 percent of global emissions were covered by a price and in November of last year the share had risen to 19.5 percent. In addition, approximately 1,400 companies now use an internal price on carbon. CPLC's goal is for 50 per cent of global emissions to be covered by carbon prices by 2030.

The companies in the Haga Initiative, like all Swedish companies, have been operating under the Swedish carbon tax for a long time (it was introduced in the early 1990s). A logical consequence of the carbon tax – or for some companies the EU emissions trading system (EU ETS) – is that emission reduction measures become profitable faster than without the tax. The Haga Initiative wants to show that Swedish companies have been and are successful, both at home and on the world market, despite – or perhaps thanks to? – the fact that GHG emissions are not for free.