Carbon Pricing Assessment and Decision-Making: A Guide to Adopting a Carbon Price

Scale
National
Sub-national
Expertise Level
Practitioner
Resource Type
Guidance and Frameworks
Language
English
Developer or Source
Partnership for Market Readiness (PMR)
World Bank

Many countries and subnational jurisdictions are considering putting a price on carbon to help reduce greenhouse gas (GHG) emissions and achieve their climate commitments. There are currently 64 carbon pricing instruments (CPIs) in place or in the process of implementation, with 10 launched in 2019 alone. Before a jurisdiction implements a CPI, it will often examine the role a CPI will play and the rationale for adopting it. The objective of this guide is to help policymakers build the case for carbon pricing and choose an appropriate CPI. Chapter one sets out the rationale for putting an explicit price on carbon and examines the two main options for implementation: emissions trading system (ETSs) and carbon taxes. Chapter two outlines the local conditions that policymakers need to consider. Chapter three outlines how to assess the potential impacts of carbon pricing on key stakeholders. Chapter four describes how the work done in the previous sections can be used to make an informed recommendation for carbon pricing implementation, and how the recommendation can then be communicated effectively.

Find more resources

Similar Tools (326)

More Tools By This Developer (49)

World Bank

Sustainable Mobility for All (SuM4All), World Bank

African Development Bank (AfDB), Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Council of Europe Development Bank (CEB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), Islamic Development Bank (IsDB), New Development Bank, World Bank

Energy Sector Management Assistance Program (ESMAP), World Bank

Food and Agriculture Organization of the United Nations (FAO), World Bank

Global Facility for Disaster Reduction and Recovery (GFDRR), The Program on Forests (PROFOR), World Bank, World Resources Institute (WRI)

Deltares, Global Facility for Disaster Reduction and Recovery (GFDRR), World Bank

Energy Sector Management Assistance Program (ESMAP), Technical University of Denmark (DTU Wind Energy), World Bank

Basque Center for Climate Change (BC3), Food and Agriculture Organization of the United Nations (FAO), World Bank

Partnership for Market Readiness (PMR)

Global Resource Information Database (GRID-Geneva), United Nations Environment Programme (UNEP), World Bank

International Energy Agency (IEA), International Renewable Energy Agency (IRENA), United Nations Statistics Division (UNSD), World Bank, World Health Organization (WHO)

Food and Agriculture Organization of the United Nations (FAO), International Fund for Agricultural Development (IFAD), World Bank

World Bank, World Resources Institute (WRI)

Global Green Growth Institute (GGGI), Organisation for Economic Co-operation and Development (OECD), United Nations Environment Programme (UNEP), World Bank