3 Minutes to Read by 3 Minutes to Read by 3 Minutes to Read by 3 (Reuters) – LONDON (Reuters) – On Tuesday, investors overseeing more than $6 trillion in assets called for a coordinated worldwide carbon pricing, claiming that emissions prices would have to nearly triple by 2030 to meet the world’s climate targets. FILE PHOTO: On October 31, 2010, a coal-burning power plant can be seen behind a factory in Baotou, China’s Inner Mongolia Autonomous Region. David Gray/REUTERS The Net Zero Asset Owner Alliance’s appeal comes ahead of the next round of global climate talks in November, with 43 members including some of the world’s largest pension funds and insurers. According to a World Bank research released in May, there are already 64 carbon pricing instruments in use worldwide, including emissions trading programs and tariffs, covering only 21% of global greenhouse gas emissions. Even within these programs, however, pricing can vary significantly. The fragmented approach makes it difficult for global investors and businesses to manage risk and plan for the long term, especially when it comes to the development and acceptance of innovative technologies required to expedite the low-carbon transition. Given this, and in order to achieve the Paris Agreement’s goal of limiting global warming to 1.5 degrees Celsius over pre-industrial levels, the committee proposed a hybrid model combining emissions trading schemes and taxes or levies. “A carbon price corridor that provides a clear economic signal as well as more pre-visibility will provide the global environment necessary for companies to thrive,” the group said. “A carbon price corridor that provides a clear economic signal as well as more pre-visibility will provide the global environment necessary for companies to thrive” (CDPQ). According to the OECD, a price of $147 per tonne is required by 2030 if the world is to achieve net zero carbon emissions by 2050, nearly trebling the present price of roughly $59 per tonne under the EU’s Emissions Trading System. “Non-regressive and revenue-neutral carbon-pricing instruments that are harmonised across borders will not only unleash massive investment in renewable power systems around the world, but will also boost sectors like construction and transportation that are in desperate need of transition,” said Gunther Thallinger, Member of the Board of Management Allianz SE and Chair of the Net-Zero Asset Owner Alliance. Simon Jessop contributed reporting, and David Evans edited the piece./n
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