Now is the time to put a proper price on carbon.
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The science is clear.
The burning of fossil fuels (e.g oil, coal, natural gas) is the single-biggest driver of greenhouse gas emissions around the world. These emissions are responsible for global warming - and as many as one in five deaths worldwide - but very few countries have put robust policies in place to prevent their production.
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The UK has Committed to net zero by 2050.
The UK government has committed to curbing greenhouse gas emissions to ‘net zero’ by 2050, which means that the emissions the UK puts into the atmosphere will be balanced by those we take out, through both natural (i.e carbon sequestration) and technological means (i.e carbon capture and storage).
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Net zero is only credible if we have policies to deliver it.
Whilst the UK’s net zero commitment has been supported by the Committee on Climate Change - describing it as being ‘necessary, feasible and cost-effective’ - this target has not yet been underlined by a robust set of policies that can ensure it is delivered within a meaningful timeframe.
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A new approach to Carbon pricing may hold the answer.
The UK’s current carbon pricing system is inconsistent with the government’s net zero pledge. Prices are sporadic, significant exemptions exist, and many sectors are not yet covered. A new approach that prices carbon dioxide - and equivalent greenhouse gases - more consistently across the economy may yet hold the answer; ensuring the tax system works to incentivise low (rather than high) carbon decisions-making, and providing a competitive advantage for those companies who choose to invest in a low-carbon future. We know from our own - and other’s - polling that this is something that the public wants to see, and that’s why we believe the time is now to deliver it.
our policy proposals.
Our UK policy work focuses on how the UK could reform its current system of carbon pricing to be fairer, more effective and consistent with the net zero target. In January 2020, the Zero Carbon campaign formed a Commission to explore what policy changes would be required to achieve these goals. Using a combination of research, analysis and stakeholder consultation, they have produced a report outlining practical pathways for introducing carbon charges across the UK economy. Click below to learn more.
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Carbon pricing can catalyse the global transition to net zero by:
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Driving a reduction in greenhouse gas emissions, leading to cleaner air, healthier diets and improved health.
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Incentivising climate conscious behaviour by financially rewarding people for making ‘greener’ choices.
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Encouraging an increase in investment and innovation towards low-carbon solutions.
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...saw the UK position itself as a global leader in the battle against climate change.
COP 26 - the UN’s annual Climate Conference - was held in Glasgow in November 2021. This was the first time countries were required to renew their voluntary climate pledges (NDCs) since the Paris Agreement was formed in 2015.
There was lots of support for carbon pricing at the summit, with the mechanism endorsed by numerous actors including European Commission President Ursula Von Der Leyen, Canadian President Justin Trudeau and the International Chamber of Commerce. German Chancellor Angela Merkel even used her last ever climate speech at COP26 to ‘make a clear plea for the pricing of carbon emissions.’ This support was also visible at COP27, with IMF Managing Director Kristalina Georgieva echoing our Commission's calls for the price carbon to average at least $75 a ton globally by the end of the decade.
As hosts of COP26, the UK was under pressure to lead by example by coming forward with ambitious pledges, and demonstrate clear and decisive leadership on climate action, both at home and abroad. Now that the summit (and its successor, COP27) is over, world leaders will expect the UK to honour the commitments we have made and keep global momentum pushing in the direction of net zero emissions.
This includes delivering on the commitments they have made to strengthen and extend UK carbon pricing, to push other countries to introduce new or improve their existing carbon pricing mechanisms, and to coalesce international support around an multilateral global carbon pricing agreement to tackle emissions embodied in trade.