Investigating of carbon finance and pricing in the world economy

If global warming is to be limited, the world must move away from fossil fuels as quickly as possible, almost everyone agrees. Economists have long advocated putting a price on carbon, a mechanism that Europe introduced in ۲۰۰۵. Doing so would allow the market to identify the cheapest greenhouse gas to reduce, and so society could fight climate change at the lowest possible cost. Others, including many politicians, worry that such schemes could trigger a backlash by raising consumer spending. Even in countries that are better known as polluters than green leaders, things are changing. By the start of ۲۰۲۳, ۲۳ percent of global greenhouse gas emissions would be covered by a carbon price, up from just ۵ percent in ۲۰۱۰, according to the World Bank. This expansion will accelerate over the coming years as more countries realize the benefits of carbon pricing and existing schemes expand their reach. The expansion of carbon pricing is happening in three ways. First, governments are creating new markets and levies. Over time, the scheme will become more stringent, with carbon auctions for the energy industry, set to begin in ۲۰۳۳, starting to compensate for them by buying credits. Second, countries with more established markets are strengthening their policies. The final way to expand carbon markets is through cross-border schemes. The European Union’s scheme is by far the most advanced. In the pilot phase of CBAM, importers of aluminum, cement, electricity, fertilizer, hydrogen, iron and steel will have to report “embodied” emissions (those generated through production and transport). Then, from ۲۰۲۶, importers will have to pay a tax equal to the difference between the carbon cost of these emissions embodied in the EU scheme and any carbon price paid by the exporter in their domestic market. Free allowances for sectors will also be phased out, with housing and transport coming in. Many of these schemes will take time to have an impact. Many sectors in Asia are weak and prices are too low to make a meaningful difference to the current EU price of €۸۰-۹۰ ($۸۵-۹۵), which itself only comes close to climate economists’ estimates of the social cost of carbon. Around the world, activists are criticizing the ability of companies to use offsets to indulge in what they call “greenwashing,” where companies falsely present themselves as environmentally friendly. Some schemes also struggle to prove they have led to emissions reductions. Carbon pricing has a domino effect. When an industry is subject to a carbon price, its businesses naturally want their competitors to face similar rules. So coal-fired power plant owners will lobby to ensure that gas-fired plants operate on a level playing field. Governments in exporting countries also have an incentive to ensure that their domestic companies pay the carbon price domestically, rather than in foreign tariffs. The question is, will the dominoes connect fast enough? Future policymakers will need to make such policies even more intrusive if the impacts of climate change are to be minimized. In this study, the impact of Carbon finance and pricing in the world economy is examined.

کلیدواژه ها:

fossil fuels ، carbon pricing ، greenhouse gas ، finance carbon