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COP26: time to make carbon polluters pay, not just talk emissions cuts
- While the cost to big polluters remains low and emissions ceilings remain generously high, carbon trading will continue to be ineffectual
- Rather than focus on sticks, carrots in the form of global carbon reduction incentives could generate headway in the fight against climate change
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As detailed preparations begin for the COP26 climate summit in Glasgow, attention is turning to “deep decarbonisation”. In short, the message that the time for talk is past is at last getting through. The urgent priority is now for multilateral agreement on practical steps that start to sharply reduce carbon dioxide (CO2) emissions.
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Only now that the US has rejoined the climate discussion does this become possible. Together with other high-income countries, plus big emitters such as China, India, South Africa and Russia, the road map and milestones to huge reductions in net emissions and “net zero” by 2050 must be agreed.
That means agreement on sticks, carrots and assistance programmes for the poor that ensure clear, measurable movement towards decarbonisation. My own personal mantra remains to decarbonise electricity, then electrify everything.
Some of the necessary sticks have been in place – or discussed in detail – for many years. Carbon trading has been in place in Europe since 2005 and is being rolled out in China this year. This has provided a marvellous and profitable side show for financial markets but has so far largely failed in cutting carbon emissions.
While the cost to big polluters remains around US$25 per tonne of emissions and emissions ceilings remain generously high, carbon trading will continue to be ineffectual. There is widespread agreement that pollution rights need to be set at US$100 to US$135 a tonne to change the behaviour of big industrial polluters.
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World leaders pledge to cut greenhouse emissions at virtual Earth Day summit
World leaders pledge to cut greenhouse emissions at virtual Earth Day summit
Momentum towards another stick – carbon border taxes on emissions-intensive imports – is also accelerating, led by governments in the European Union. My betting is that these taxes will arouse huge international controversy that will keep World Trade Organization negotiators mired for years.
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