Carbon Pricing Leadership Report 2022

Table of Contents

Carbon Pricing Leadership Report: Relevance

GS 3: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Recently, World Bank has released a new report titled, ‘Carbon Pricing Leadership Report’, which presents the latest carbon pricing developments around the world.

The report was launched at Innovate4Climate, the World Bank Group’s flagship annual event on climate finance, investment, and markets.
The report has revealed that Global carbon pricing revenue in 2021 has increased by almost 60% from 2020 levels.
Four new carbon pricing instruments were implemented since the release of the 2021 State and Trends of Carbon Pricing report.

The report finds that there are 68 direct carbon pricing instruments operating today: 36 carbon taxes and 32 Emissions Trading Systems (ETSs).
Carbon prices hit record highs in many jurisdictions, including the European Union, California, New Zealand, the Republic of Korea, Switzerland and Canada.
However, the report finds that less than 4 percent of global emissions are currently covered by a direct carbon price in the range needed by 2030 to meet the temperature goal of the Paris Agreement.
Several countries have increased their carbon tax rates and adopted more ambitious trajectories. Moreover, pilot ETSs are being considered in a number of countries, including national and regional programs.

Even as COVID pandemic starts to recede, the war in Ukraine threatens to impact global development outcomes.
Moreover, the findings of the latest IPCC reports provide a stark warning. We must decarbonize our economies at an accelerated pace and scale and reach net zero emissions by 2050.
We must avoid fundamentally altering our planet’s climate and its irreversible impacts on development.
Bold and swift action must be taken to ensure that we can realize green, resilient and inclusive development.

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