Global business tells governments at COP26: put a price on carbon, but do it the right way
Glasgow, 3 November 2021
The International Chamber of Commerce (ICC) has today called on governments to “get smart” in how they use carbon pricing instruments to accelerate the transition to a net-zero economy at the lowest possible economic cost.
At an informal dialogue with finance ministers at COP26, the global business organization will publish the findings of an extensive survey of companies’ experience operating under the 60 different carbon pricing regimes in force today throughout the world.
The results point to widespread concern amongst business about the growing fragmentation of systems used to price greenhouse gas emissions – emphasising that greater international harmonization of policy approaches will be essential to mobilize the private investment needed to achieve net-zero emissions by 2050.
The ICC report presents 10 core principles for the effective design of carbon pricing instruments, including an appeal to governments to ensure that such measures are focused squarely on reducing GHG emissions – rather than being used, for instance, as a vehicle to boost government revenues. The principles also highlight the imperative to establish clear, transparent pricing frameworks and, moreover, urge governments to pay greater attention to avoiding inconsistencies or conflicts with other energy, trade and taxation policies.
The report was developed drawing on insights from around 200 companies with international operations – as well as input from ICC’s global network in over 130 countries.