Multijurisdictional Approaches to Carbon Pricing: Integrating Design Elements for a Low Carbon Club

The report details a December 2015 workshop in Paris focused on 'low carbon clubs' or multijurisdictional cooperative approaches (MCAs). Participants argued that these clubs should aim to increase emissions reduction ambition and could use carbon pricing to fund technological innovation in sectors like gas, electricity, oil, and mining. The discussion highlighted the potential for linking diverse carbon markets through initiatives like the World Bank's Networked Carbon Markets (NCM) and emphasized the need for non-pricing incentives—such as technology transfer and capacity building—to encourage participation from developing nations and the Alliance of Small Island States.

• Workshop participants agreed that the primary objective of a multijurisdictional cooperative approach (MCA) must be to increase the ambition of emissions reductions for national and subnational governments over time.
• Carbon pricing within a club could address funding gaps and limited market pull for technological innovation in the oil, gas, electricity, and mining sectors, helping technologies move past the 'technology valley of death' from research to commercialization.
• The World Bank's Networked Carbon Markets (NCM) program is viewed as a potential platform to facilitate the linking of diverse carbon markets within a club framework, aiming for a price on carbon that reflects differing national circumstances rather than a single global price.
• To ensure the participation of developing and less-developed countries, carbon pricing must be complemented by other incentives, as these nations are often more focused on the costs of climate impacts than abatement.
• For emerging economies like the BASIC coalition (Brazil, South Africa, India, and China), an MCA would be more attractive if framed as a strategy combining climate mitigation with economic growth, capacity building, and technology transfer.
• The Alliance of Small Island States prioritizes financial benefits within an MCA, specifically seeking new financing pathways for adaptation measures to combat sea-level rise and storm surges.
• Participants reached a consensus that any MCA requires a uniform level of ambition among its members to prevent 'free riding' and must establish a common set of rules for treating carbon as a trading commodity.

APA

Climate Strategies (2016). Multijurisdictional Approaches to Carbon Pricing: Integrating Design Elements for a Low Carbon Club. https://climatestrategies.org/wp-content/uploads/2016/04/Low-Carbon-Clubs-Report-1.pdf

Chicago

Climate Strategies. Multijurisdictional Approaches to Carbon Pricing: Integrating Design Elements for a Low Carbon Club. 2016. https://climatestrategies.org/wp-content/uploads/2016/04/Low-Carbon-Clubs-Report-1.pdf.

Wikipedia

{{cite report |author=Climate Strategies |title=Multijurisdictional Approaches to Carbon Pricing: Integrating Design Elements for a Low Carbon Club |date=April 2016 |url=https://climatestrategies.org/wp-content/uploads/2016/04/Low-Carbon-Clubs-Report-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatestrategies2016multijurisdictional, author = {{Climate Strategies}}, title = {{Multijurisdictional Approaches to Carbon Pricing: Integrating Design Elements for a Low Carbon Club}}, institution = {Climate Strategies}, year = {2016}, month = apr, url = {https://climatestrategies.org/wp-content/uploads/2016/04/Low-Carbon-Clubs-Report-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }