The combined effects of these highly polluting sectors is detrimental to the climate and to public health. Moreover, continued high emissions from these sectors undermines the ‘polluter pays’ principle.
Pricing carbon emissions for power generation and heavy industry can prod these sectors to decarbonise more rapidly. It also helps ensure that polluters pay for the environmental and societal cost of their pollution, which can then be reinvested in climate action and facilitating a fair transition.
A growing number of countries, regions and blocs are imposing a carbon price on the industrial and power sectors through systems that limit overall emissions but allow companies to trade their savings (cap and trade systems) or through carbon taxes. However, most carbon prices around the world are too low to reduce emissions fast enough to limit global warming to safer levels.
When it comes to industrial and power decarbonisation, Carbon Market Watch focuses on:
“Limiting global temperature rises and meeting the Paris Agreement targets requires the rapid decarbonisation of the entire economy. Unfortunately, there are far too many laggards. Carbon pricing needs to be harmonised in a way that encourages industry to slash its emissions.”
Sam Van den plas
Policy director
“Limiting global temperature rises and meeting the Paris Agreement targets requires the rapid decarbonisation of the entire economy. Unfortunately, there are far too many laggards. Carbon pricing needs to be harmonised in a way that encourages industry to slash its emissions.”
Sam Van den plas
Policy director
In its efforts to placate heavy industry, the European Commission’s latest proposed changes to the Carbon Border Adjustment Mechanism serve no environmental purpose. It’s time to refocus the CBAM on the climate.
Although the European Union has the means and capacity to wave goodbye to fossil fuels by 2040, EU environment ministers have backed an unambitious climate target for that year that unfairly shifts some of the burden for domestic climate action to the Global South and future generations.
This document contains Carbon Market Watch’s feedback to the European Commission’s proposal to amend the European Climate Law. It analyses the challenges and shortcomings of the proposal and makes a
The European Commission’s Clean Industrial Deal and Omnibus package supports big polluters while the EU’s climate goals are missing in action
sam.vandenplas[at]carbonmarketwatch.org
lidia.tamellini[at]carbonmarketwatch.org
wijnand.stoefs[at]carbonmarketwatch.org
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