CARBON PRICING PATHWAYS COP21 AND BEYOND

The report argues that carbon pricing is a critical tool for meeting the Paris Agreement's goal of keeping global temperatures well below 2°C. It introduces 'Carbon Pricing Bands' to categorize price levels by their economic impact—ranging from 'Introductory' (up to $20) to 'Targeted' (above $80)—and presents four potential future trajectories: a 'Success Trajectory' leading to a low-carbon world, and three failure scenarios ('Sailing into the Cliff', 'Stormy Waters', and 'Running Aground') where temperatures rise by 3°C to 4°C due to inadequate or chaotic pricing policies. The update highlights post-COP21 developments, including the commitment of 90 nations to use market mechanisms and specific national actions in China, India, and Canada.

• Of the 195 nations represented at COP21, 90 intend to utilize carbon pricing and other market-based mechanisms to achieve their emissions reduction targets.
• The report defines four distinct carbon pricing bands based on their capacity to drive economic and technological shifts: 'Introductory' (up to $20) for business adaptation; 'Operational' ($20 to $50) to enable structural changes like switching from coal to gas; 'Transformational' ($50 to $80) to make renewables the most attractive investment; and 'Targeted' (above $80) for specific objectives such as eliminating certain fuel sources.
• The document identifies fossil fuel subsidies as a 'negative price on carbon' that increases the cost of low-carbon technologies and encourages fossil fuel consumption.
• The 'Success Trajectory' envisions a world where global temperatures remain within 2°C of pre-industrial levels through the use of mature carbon pricing schemes, price convergence, and complementary policies.
• Three alternative failure trajectories are presented: 'Sailing into the Cliff' (3°C+), where a lack of national policies leads to a sudden, crippling price surge after catastrophic weather; 'Stormy Waters' (3°C), characterized by haphazard, out-of-sync pricing schemes; and 'Running Aground' (4°C), where climate change recedes as a priority and coal consumption accelerates.
• Recent national developments include China implementing a nationwide system to price emissions and blocking new coal plants in 15 regions, India doubling its coal tax and pledging a 30-35% cut in carbon intensity by 2030, and Canada working toward a federal carbon price.

APA

We Mean Business Coalition (2016). CARBON PRICING PATHWAYS COP21 AND BEYOND. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/Carbon-Pricing-Pathways-April-2016_0.pdf

Chicago

We Mean Business Coalition. CARBON PRICING PATHWAYS COP21 AND BEYOND. 2016. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/Carbon-Pricing-Pathways-April-2016_0.pdf.

Wikipedia

{{cite report |author=We Mean Business Coalition |title=CARBON PRICING PATHWAYS COP21 AND BEYOND |date=April 2016 |url=https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/Carbon-Pricing-Pathways-April-2016_0.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wemeanbusinesscoalition2016carbon, author = {{We Mean Business Coalition}}, title = {{CARBON PRICING PATHWAYS COP21 AND BEYOND}}, institution = {We Mean Business Coalition}, year = {2016}, month = apr, url = {https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/Carbon-Pricing-Pathways-April-2016_0.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }