At COP28, momentum increases for the Global Carbon Pricing Challenge

DUBAI, United Arab Emirates, Dec. 10, 2023 /CNW/ – Carbon pricing is most effective when more countries adopt it—broader coverage means more opportunities to find clean solutions. Through international cooperation, countries can send consistent signals that it cannot be free to pollute.

Today at COP28, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, and Catherine Stewart, Canada’s Ambassador for Climate Change, convened a high‑level event with carbon pricing Champions working together to advance the global conversation on carbon pricing. This event follows the Prime Minister’s leader-level event on the Global Carbon Pricing Challenge during the United Nations General Assembly in September 2023. Ahead of COP28, Canada welcomed Sweden and the European Union as new Partners of the Global Carbon Pricing Challenge. These jurisdictions follow a growing list of members that have joined since COP27, including the Republic of Korea, Norway, Denmark, and the Côte d’Ivoire as Friends of the Challenge.

At COP28, during the side event “Driving Change: A Ministerial Event on the Global Carbon Pricing Challenge”, Minister Guilbeault convened new and existing members of the Challenge together to showcase their progress on the implementation of carbon pricing. Additionally, the event served as a forum for Ministers to share their experiences with carbon pricing systems and provided an opportunity to deepen collaboration to strengthen systems that are emerging globally. Minister Guilbeault and Ambassador Stewart also showcased the independent Secretariat of the Global Carbon Pricing Challenge and revealed the Challenge’s new website that highlights how nations globally can raise the bar on their climate ambitions.

The Government of Canada will work in collaboration with two organizations that will form the Global Carbon Pricing Challenge Secretariat. The two organizations—Adelphi Research and the International Emissions Trading Association—have a strong track record in the carbon pricing space and experience establishing multilateral forums for the exchange of ideas and information on carbon-market trading and market climate solutions.

Since the Challenge was launched by Canada at COP26, it has attracted support from countries and organizations around the globe. Despite different perspectives and experiences, these carbon pricing Champions represent a united front in the fight against climate change and a shared determination to build a sustainable future.

Canada encourages more jurisdictions to step up and join the Challenge to help spur momentum to expand carbon pricing as a low-cost, effective way of reducing emissions and driving innovation.

Quotes

“Carbon pricing works best when it is adopted by a maximum number of countries. It is only through concerted international actions that we can send a clear and powerful message that it is no longer acceptable to pollute freely. This cooperation will also help us find cleaner solutions and will help drive a cleaner global economy.”
– The Honourable Steven Guilbeault, Minister of Environment and Climate Change

“The Global Carbon Pricing Challenge has a collective goal of covering 60 percent of global emissions by 2030. It is an ambitious and important goal to reach the goal of the Paris Agreement. Pricing carbon through a tax or an emissions trading system, such as the European Union Emissions Trading System, is a cost-efficient way to reduce emissions. It creates a clear signal for the market, generates revenues which can be used to further support the climate transition, and strengthens the competitiveness for alternative solutions.”
– Romina Pourmokhtari, Minister for Climate and the Environment, Sweden

Quick facts

According to the World Bank, there are 73 carbon pricing initiatives currently in place across the globe, both national and subnational. Together, these initiatives cover 23 percent of global greenhouse gas emissions.Launched by Canada at COP26, the Global Carbon Pricing Challenge calls for a partnership of carbon pricing Champions from around the world to expand the use of carbon pricing by strengthening existing systems and supporting emerging ones, with a collective goal of covering 60 percent of global emissions by 2030.Joining the Challenge provides an opportunity for partners to build on their strong foundations of carbon pricing leadership in partnership with like-minded jurisdictions. With equity and fairness front and centre, the Challenge creates a forum for dialogue and coordination to better understand policy design choices and to support other countries in adopting carbon pricing.Partners of the Global Carbon Pricing Challenge are implementing, or scheduled to implement, carbon pricing, and are committed to the goal of increasing coverage of carbon pricing to 60 percent of global emissions by 2030.Friends of the Global Carbon Pricing Challenge represent jurisdictions or organizations that support the Challenge’s goals and objectives, and which may be considering the implementation of explicit domestic carbon pricing systems.The Challenge places a special emphasis on supporting developing countries, recognizing the unique challenges they face in addressing climate change. Its commitment to inclusivity aims to ensure the benefits of global collaboration extend across diverse economies and circumstances.The Secretariat is guided by the Chair of the Global Carbon Pricing Challenge Advisory Committee and is responsible for advancing all aspects of the Global Carbon Pricing Challenge, including facilitating technical exchanges and support for the expansion of carbon pricing in the Global South, coordination among stakeholders, fostering high-level dialogue among Partners, and supporting Friends of the Challenge with technical expertise on carbon pricing.Canada is recognized internationally as a climate leader, in large part due to robust domestic carbon pollution pricing. Canada’s approach gives provinces and territories the flexibility to implement their own carbon pricing systems that best meet their needs, while aligning with minimum national standards.

Related products

Canada Builds Momentum and Welcomes Additional Champions to the Global Carbon Pricing Challenge

Associated links

The Global Carbon Pricing ChallengeCarbon Pollution Pricing in CanadaCOP28—United Nations Climate Change Conference

Environment and Climate Change Canada’s Twitter page
Environment and Climate Change Canada’s Facebook page

SOURCE Environment and Climate Change Canada