Book contents
- Frontmatter
- Contents
- Preface
- Acknowledgements
- Introduction
- Summary of Conclusions
- Part I Climate Change – Our Approach
- Part II Impacts of Climate Change on Growth and Development
- Part III The Economics of Stabilisation
- Part IV Policy Responses for Mitigation
- Part V Policy Responses for Adaptation
- Part VI International Collective Action
- 21 Framework for Understanding International Collective Action for Climate Change
- 22 Creating a Global Price for Carbon
- 23 Supporting the Transition to a Low-Carbon Global Economy
- 24 Promoting Effective International Technology Co-operation
- 25 Reversing Emissions from Land Use Change
- 26 International Support for Adaptation
- 27 Conclusions: Building and Sustaining International Co-operation on Climate Change
- Abbreviations and Acronyms
- Postscript
- Technical Annex to Postscript
- Index
22 - Creating a Global Price for Carbon
Published online by Cambridge University Press: 05 March 2014
- Frontmatter
- Contents
- Preface
- Acknowledgements
- Introduction
- Summary of Conclusions
- Part I Climate Change – Our Approach
- Part II Impacts of Climate Change on Growth and Development
- Part III The Economics of Stabilisation
- Part IV Policy Responses for Mitigation
- Part V Policy Responses for Adaptation
- Part VI International Collective Action
- 21 Framework for Understanding International Collective Action for Climate Change
- 22 Creating a Global Price for Carbon
- 23 Supporting the Transition to a Low-Carbon Global Economy
- 24 Promoting Effective International Technology Co-operation
- 25 Reversing Emissions from Land Use Change
- 26 International Support for Adaptation
- 27 Conclusions: Building and Sustaining International Co-operation on Climate Change
- Abbreviations and Acronyms
- Postscript
- Technical Annex to Postscript
- Index
Summary
KEY MESSAGES
A shared understanding of long-term goals must be at the centre of international frameworks to support large reductions in greenhouse gas emissions reductions around the world.
A broadly similar price of carbon is necessary to keep down the overall costs of making these reductions, and can be created through tax, trading or regulation. Creating a transparent and comparable carbon price signal around the world is an urgent challenge for international collective action.
Securing broad-based and sustained co-operation requires an equitable distribution of effort across both developed and developing countries. There is no single formula that captures all dimensions of equity, but calculations based on income, per capita emissions and historic responsibility all point to developed countries taking responsibility for emissions reductions of at least 60% from 1990 levels by 2050.
The Kyoto Protocol has established valuable institutions to underpin international emissions trading. There are strong reasons to build on and learn from this approach. There are also opportunities to use the UNFCCC dialogue and the review of the effectiveness of the Kyoto Protocol to explore ways to improve.
Private sector trading schemes are now at the heart of international flows of carbon finance. Linking and expanding regional and sectoral emissions trading schemes, including sub-national and voluntary schemes, requires greater international co-operation and the development of appropriate new institutional arrangements.
Common but differentiated responsibilities should be reflected in future international frameworks, including through a greater range of commitments and multi-stage approaches.
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- The Economics of Climate ChangeThe Stern Review, pp. 530 - 554Publisher: Cambridge University PressPrint publication year: 2007
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