September 29, 2023
By Melissa Harris, Senior Director at Delphi
Amid record-breaking temperatures and one of the worst forest-fire seasons to date, leaders from government, industry and civil society gathered in New York for Climate Week this month with the hope of increasing ambition and limiting warming to 1.5 degrees.
Experts from GLOBE Series and Delphi participated in a number of high-level conversations during the week, and were also privileged to support the Government of Canada’s Global Carbon Pricing Challenge event. For those of you who weren’t able to attend, I’m pleased to share three key takeaways from Climate Week NYC on carbon pricing.
#1 Momentum is Growing
There are now 73 carbon pricing initiatives in jurisdictions worldwide, covering 23% of global emissions – and we heard from the World Bank that carbon pricing revenues exceeded $95 billion USD. New carbon pricing instruments have been implemented in Austria and Indonesia. Australia restarted their large emitters program in July. Chile, Malaysia, Vietnam, Thailand and Turkey continue to work towards implementing carbon pricing, as well as Pennsylvania and New York State.
Within Canada, we continue to see movement on carbon pricing as well. The past few years have been marked by considerable flux in subnational approaches. Our updated carbon-pricing map (see below) outlines the current state of play after recent changes in Nova Scotia, Newfoundland and Labrador, Prince Edward Island and New Brunswick. With federal direction set on strengthened standards and provincial/territorial programs adjusted accordingly, we are potentially nearing a time of stability.
#2 Collaboration is Driving Progress
In numerous events, including IETA’s North America Climate Summit, it was inspiring to see experienced jurisdictions like California, Québec and Washington supporting those in the earlier stages of development. The Global Carbon Pricing Challenge (GCPC) was another fora for this kind of knowledge sharing. Canada welcomed new members to the GCPC, a partnership aimed at tripling the coverage of carbon pricing worldwide by 2030. Denmark and Norway joined as members, and Côte d’Ivoire came on board as a friend of the initiative.
Canada’s leadership on the GCPC and carbon pricing more broadly is important and beneficial to Canadians. High-integrity carbon pricing regimes everywhere are useful to curb emissions and level the playing field for industry.
#3 Equity is on the Radar
One notable advancement in this year’s Climate Week discussions was the focus on equity. For example, Selwin Hart, Assistant Secretary-General for Climate Action at the United Nations, highlighted the significant potential of Africa’s participation in the carbon market if leaders in the Global South are properly supported. Discussions of regional disparities, maximizing carbon pricing revenues to reduce disproportionate impacts on low-income households, and empowering full participation brought a renewed energy to the carbon-pricing conversation.
More urgency is needed and we’ll need to see higher prices and larger coverage for carbon pricing to help drive progress to net zero – but we’re starting to see the momentum, collaboration and inclusivity that will help get us there.
Melissa Harris is a Senior Director at Delphi. For more information on Climate Week NYC outcomes or information on how your organization can reach its corporate sustainability, net-zero, and ESG goals, contact Melissa at mharris@delphi.ca.
