Carbon pricing too low to fight climate change
An Organisation for Economic Cooperation & Development (OECD) report has concluded that carbon pricing worldwide is still too low to force sufficient changes in behaviour and economic activity to limit climate change, reports Keith Nuthall.
Entitled Effective carbon rates 2018: Pricing carbon emissions through taxes and emissions trading, the report states that the shortfall of carbon prices and real climate costs – estimated at €30/t of carbon dioxide (CO2) – stands at 76.5% for 2018. While this compares favourably with the 83% carbon gap reported in 2012, progress is ‘still insufficient’, says the OECD, which projects that at current rates of change, carbon prices will only meet real climate costs by 2095.
‘Much faster action is needed to incentivise companies to innovate and compete to bring about a low carbon economy and to stimulate households to adopt low carbon lifestyles,’ states the study.