Carbon Pricing for Climate Action: New Countdown to COP Policy Briefing

The document analyzes the EU's Carbon Border Adjustment Mechanism (CBAM) as a shift in climate policy toward trade and economic levers. It highlights the growth of carbon pricing globally, including the EU ETS and China's national ETS, and suggests that COP26 should be used to establish a 'green window' for preferential treatment of green goods and a mechanism to allocate CBAM revenues to vulnerable countries to ensure a just transition.

• The EU's Carbon Border Adjustment Mechanism (CBAM) shifts climate policy from science and technology into the realm of trade and economic policy by applying carbon prices to imports of electricity generation, aluminium, fertiliser, cement, iron, and steel to prevent carbon leakage.
• Global carbon pricing is expanding, with the World Bank reporting 64 instruments covering over 20% of global greenhouse gas emissions and generating USD53 billion in revenue as of May 2021.
• China launched a national Emissions Trading Scheme (ETS) on July 16, 2021, initially limited to coal power but expected to expand and become the world's largest scheme.
• The Inevitable Policy Response (IPR) forecasts a tiered global carbon pricing system by 2030, with developed economies led by the EU reaching backstop signal prices of USD60-85, while emerging and developing nations occupy lower bands.
• To maximize the effectiveness of carbon pricing, the author proposes a 'green window' of preferential treatment for green goods and services—such as zero tariffs on zero-carbon products—and the allocation of CBAM revenues to help vulnerable countries decarbonize.

APA

Climate Bonds Initiative (2021). Carbon Pricing for Climate Action: New Countdown to COP Policy Briefing. https://www.climatebonds.net/news-events/blog/carbon-pricing-climate-action-new-countdown-cop-policy-briefing

Chicago

Climate Bonds Initiative. Carbon Pricing for Climate Action: New Countdown to COP Policy Briefing. 2021. https://www.climatebonds.net/news-events/blog/carbon-pricing-climate-action-new-countdown-cop-policy-briefing.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Carbon Pricing for Climate Action: New Countdown to COP Policy Briefing |date=23 September 2021 |url=https://www.climatebonds.net/news-events/blog/carbon-pricing-climate-action-new-countdown-cop-policy-briefing |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2021carbon, author = {{Climate Bonds Initiative}}, title = {{Carbon Pricing for Climate Action: New Countdown to COP Policy Briefing}}, institution = {Climate Bonds Initiative}, year = {2021}, month = sep, url = {https://www.climatebonds.net/news-events/blog/carbon-pricing-climate-action-new-countdown-cop-policy-briefing}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }