Monday, April 10, 2017

OECD report: current carbon prices are too low to ensure needed GHG emissions reduction



The OECD released the report about pricing CO2 through taxes and emissions trading systems, which presents a new data on “effective carbon rates” on CO2-emissions for energy use across six economic sectors in 41 countries. The study analyzed OECD countries responsible for some 80 percent of global carbon dioxide emissions and found a major gap between current carbon pricing policies and what should be the minimum estimated cost for carbon given its climate impact.

According to the report, a metric ton of carbon should be priced at least at 30 Euros  ( about $34)  to account for the damage done to the climate. However reality is that for 41 countries the OECD analyzed, around 70 percent of emissions are priced at zero, while less than 5 percent actually meet the 30 Euros per metric ton minimum.
Across all sectors and countries, the average effective carbon rate is €14.4 per ton of CO2 of which 93.1% are excise taxes, 1.3% are carbon taxes, and 5.6% are emissions trading systems. Read more at http://www.keepeek.com