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How carbon prices are taking over the world
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- ESG Insights

#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
Global Shift: Shift towards European model of carbon pricing, with mechanisms being adopted worldwide, even in historically high-pollution countries.
CBAM Introduction: The EU's CBAM to levy carbon costs on imports by 2026, incentivizing global supply chains to adopt greener practices.
Emissions Trading Schemes: Various countries ramping up efforts through national markets, emissions trading schemes, and linking dormant carbon-credit markets.
Flaws and Criticisms: Critiques focus on insufficient price setting, potential for greenwashing, and lack of verifiable emission reductions.
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?