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How carbon prices are taking over the world

Authors
Maple

#CarbonPricing Expands Globally: Impact & Challenges Key Takeaways:

  • Global emissions under carbon pricing increased from 5% (2010) to 23% (2023).
  • CBAM aims to prevent carbon leakage by taxing imports based on their carbon footprint.
  • Challenges include low impact of some schemes and risk of greenwashing.

Further Insights

  1. Global Shift: Shift towards European model of carbon pricing, with mechanisms being adopted worldwide, even in historically high-pollution countries.

  2. CBAM Introduction: The EU's CBAM to levy carbon costs on imports by 2026, incentivizing global supply chains to adopt greener practices.

  3. Emissions Trading Schemes: Various countries ramping up efforts through national markets, emissions trading schemes, and linking dormant carbon-credit markets.

  4. Flaws and Criticisms: Critiques focus on insufficient price setting, potential for greenwashing, and lack of verifiable emission reductions.

  5. Behavioral Change: Despite limitations, carbon pricing encourages emissions monitoring and encourages gradual shifts towards greener practices.

Closing Thoughts: With the expanding global footprint of carbon pricing, will we see a significant shift towards sustainability, or do the challenges present too great of hurdles? As business leaders, how can we navigate and contribute positively in this transforming landscape?

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