UNEP calls for carbon pricing policy instruments

Article summary

The United Nations Environment Programme (UNEP) has published an update about a new position paper ahead of the G7 Leader’s Summit in Berlin, put together by the UN Net-Zero Asset Owner Alliance. The paper argues that carbon pricing should be supported by policy instruments including international coalitions in order to provide predictable price signals to businesses, and guarantee an equitable transition for consumers. The conditions set out in the paper are designed to enable momentum for effective carbon pricing, which has the potential to accelerate the low-carbon transition across a wide range of sectors, markets and businesses and minimise the negative distributional impacts on communities and households. Governments are additionally encouraged to promote international co-operation on carbon pricing, including through the mechanisms outlined under Article 6 of the Paris Agreement.