The establishment of a Carbon Pricing Panel by the World Bank was welcomed by United Nations Secretary-General Ban Ki-moon today. The Secretary-General said, “Putting a price on carbon has been recognized as one of the most effective tools to incentivize low-carbon growth and lower greenhouse gas emissions. The Carbon Pricing Panel established by the World Bank can help accelerate the momentum to put a price on carbon-based fossil fuel emissions.”
A price on carbon helps shift the burden for the damage being done to the environment back on those who are responsible for using fossil fuels. Instead of dictating who should reduce emissions where and how, a carbon price gives an economic signal so polluters can decide for themselves whether to reduce emissions, or to continue polluting and pay for it.
A groundswell of support for carbon pricing was created at the UN Climate Summit in 2014, where 74 countries and more than 1,000 companies expressed support to set a price on greenhouse gas emissions. The Secretary-General said, “There is great hope for an ambitious global agreement at the upcoming climate change conference in Paris. Governments and business have an integral role to play in setting the right frameworks to incentivize and accelerate climate action.” He added, “I encourage more governments and companies to embrace carbon pricing as a valuable tool for limiting further global temperature rise.”
Through the Global Compact’s Business Leadership Criteria on Carbon Pricing, leading companies have made a commitment to become Carbon Pricing Champions. Those companies have committed to integrating carbon pricing into their corporate long-term strategies and investment decisions, publicly advocating the importance of carbon pricing, and communicating their progress over time on the criteria in public corporate reports.
Read the full World Bank press release here.