Carbon pricing is a key policy tool in the fight against climate change, and the World Bank plays a crucial role in tracking and analyzing global trends in this area. In its latest report on carbon pricing, the World Bank provides an overview of the state and trends of carbon pricing policies around the world for the year 2024.
Carbon pricing is a mechanism that puts a price on carbon emissions, either through a carbon tax or a cap-and-trade system. By putting a price on carbon, governments aim to incentivize businesses and individuals to reduce their carbon footprint and transition to cleaner, more sustainable practices.
According to the World Bank’s report, carbon pricing initiatives continue to gain momentum around the world. As of 2024, 64 jurisdictions have implemented carbon pricing mechanisms, covering around 22% of global greenhouse gas emissions. This represents a significant increase from just a few years ago, indicating a growing recognition of the importance of putting a price on carbon to address climate change.
The report also highlights the diversity of carbon pricing mechanisms in place, with some countries opting for carbon taxes while others have chosen cap-and-trade systems. The effectiveness of these mechanisms depends on various factors, including the level of the carbon price, the sectors covered, and the use of revenue generated from carbon pricing.
One key trend identified in the report is the increasing ambition of carbon pricing policies. Many countries are raising their carbon prices or expanding the coverage of their carbon pricing mechanisms to include more sectors and greenhouse gases. This reflects a growing understanding of the urgency of addressing climate change and the need for more ambitious action to reduce emissions.
Another trend highlighted in the report is the growing interest in international cooperation on carbon pricing. The report notes that several regional initiatives are emerging, such as the European Union’s Emissions Trading System and the Carbon Pricing Leadership Coalition, which aim to harmonize carbon pricing policies across borders and create a more level playing field for businesses.
Overall, the World Bank’s report on carbon pricing state and trends for 2024 paints a picture of a world where carbon pricing is becoming an increasingly important tool in the fight against climate change. As more countries adopt carbon pricing mechanisms and raise their ambition levels, there is hope that we can make significant progress towards reducing global emissions and building a more sustainable future.
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- Source: https://zephyrnet.com/state-and-trends-of-carbon-pricing-2024-publicado-pelo-banco-mundial/