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Add to Preferred SourcesA new report by the High-Level Commission on Carbon Pricing and Competitiveness— comprising CEOs and senior executives from leading global companies, as well as former high-level government officials and representatives from academia—calls on industry peers and governments to adopt strong carbon pricing policies.
As more businesses develop low-carbon strategies, supportive government policies can act in tandem to unlock economic opportunities and manage competitiveness concerns.
“Bold and immediate commitment is needed to respond to the challenge of climate change. Carbon pricing is an effective response, especially when coupled with other policies. It can result in remarkable opportunities for corporations, countries, and communities,” said Anand Mahindra, Chairman, Mahindra Group.
Joining the Commission on this call for strong carbon prices are leading companies and organizations that have endorsed the report’s key findings.
Carbon pricing is a flexible and low-cost approach to reduce greenhouse gases. Carbon pricing, along with other policies, such as increased investment in low-carbon technologies, can drive innovation in industries and foster continuous process improvement. Taken together, these policies will facilitate the transition to a low-carbon economy, even in highly emissions-intensive and trade-exposed sectors.
The report finds a wealth of experience on how other policies, such as lowering other corporate taxes and providing technology innovation assistance to emerging industries, can support carbon pricing and alleviate competitiveness concerns. It finds that other variables—such as corporate tax rates, energy prices, wage rates, labor availability, infrastructure, geographic location, cost of capital, exchange rates, commodities and materials prices—have as large an impact as carbon pricing does on most industry decisions to locate or invest. Furthermore, early evidence from advanced economies shows that putting a price on carbon pollution does not curtail industrial growth or prompt polluters to move to countries that do not charge such a price.
Additionally, carbon pricing can be advantageous for low-emitting firms and has the potential to boost new industries and advance innovation in existing ones. For example, after British Columbia introduced a carbon tax, a new clean technology sector emerged, comprising over 200 companies collectively generating $1.7b annually.
Read and download the report: High-Level Commission on Carbon Pricing and Competitiveness.
Original source: CPLC
Published on 21 September 2019