In 2018 and 2019, the number of carbon pricing initiatives around the world increased and existing systems were strengthened as jurisdictions assessed their policies to better align with their climate objectives. But we are still very far from where we need to be to meet the Paris Agreement objectives. The coverage and price levels of carbon pricing initiatives is still insufficient. Overall, while we see some encouraging trends, action on carbon pricing is nowhere near where it should be: it still covers only a small part of global emissions at prices too low to significantly reduce emissions.
This report contributes to supporting this effort by describing the latest developments and some of the lessons learned from jurisdictions around the world. This report provides an up-to-date overview of existing and emerging carbon pricing instruments around the world, including international, national and subnational initiatives. It also investigates trends surrounding the development and implementation of carbon pricing instruments and how they could accelerate the delivery of long-term mitigation goals. This edition also discusses the relation between policies that put an explicit price on carbon and policies that put an implicit price on carbon.
The report also covers a variety of ways of putting a price on carbon emissions, which are here classified as carbon pricing, internal carbon pricing and implicit carbon pricing.