SYLLABUS SECTION: GS III (ENVIRONENT AND ECOLOGY)
WHY IN THE NEWS?
This report was prepare by the Secretariat of Carbon Pricing Leadership Coalition (CPLC) to review global developments in carbon pricing, implications for carbon market growth and broader limitations to carbon pricing potential.
- To meet the Paris Agreement temperature goals less than 4% of global emissions are currently cover by a carbon price within the range needed by 2030.
- To meet the Paris Agreement target several countries increase their carbon tax rates and adopted more ambitious trajectories, and pilot ETS are being considered in a number of countries.
- Agreement on Article 6 is encouraging further interest in carbon markets.
- It gives countries the tools for environmental integrity to avoid double counting and paves the way to get private capital flowing to developing countries.
- Net zero involves first cutting emissions to a minimum, then seeking (permanent) removals.
- The world is not on track to achieve net zero by 2050.
- Carbon pricing is an important mitigation tool, but it isn’t a silver bullet.
- Carbon markets are intend as a tool for climate action and to leverage investment.
- High-quality carbon credits are crucial for long-term emissions reduction.
- Corporate net zero commitments should include value chain emissions.
- Net zero should be integrate into all investment decisions.
- The path to net zero should be socially fair and just.
- The credibility of ambition and stakeholder engagement in net zero development and implementation processes depend on transparent net zero targets.
- Transparency, clear targets, and accountability are key
CARBON PRICING LEADERSHIP COALITION:
- CPLC is a voluntary initiative that brings together leaders from government, business, civil society and academia to enhance global understanding of carbon pricing as a tool for accelerating and financing effective climate action.
- It curbs greenhouse gas emissions by placing a fee on emitting and/or offering an incentive for emitting less.
- Price on carbon emission is apply either through
- Carbon Tax: the price that governments impose on polluters for each metric ton of carbon dioxide emissions generated.
- Emission Trading System: a tradable permit system for GHG emissions. It sets a limit (cap) on GHG emissions that can emitted.
Read more: UPSC CURRENT AFFAIRS
SOURCE: ECONOMIC TIMES