CCI’s latest newsletter has further reflections on what was achieved at COP26. For the whole statement read Glasgow Pact invites historic race to enhanced climate action. From these statements and recent webinars it is clear that CCI is hugely encouraged by the completion of Article 6 ‘Paris Rulebook’ which will facilitate serious engagement with the issue of international carbon pricing, a policy ask of both CCI and the IMF. CCI is now expecting this to be very much on the agenda at the forthcoming G7 in Germany next year.
Premier Trudeau (Canada) stated at the Carbon Pricing Leadership Coalition meeting on November 2nd…Just as globally we’ve agreed to a minimum corporate tax, we must work together to ensure it’s no longer free to pollute anywhere in the world. That means establishing a minimum standard for pricing pollution.
CCI notes that the Article 6.8 rules could spur major climate policy acceleration ….
Rules for non-market approaches (NMA) to “overall mitigation of global emissions” (OMGE), under Paris Agreement Article 6, Paragraph 8, hold immense promise for accelerating climate-smart finance, agriculture, land use, infrastructure, and development. “Non-market” refers to ways for nations to work together to eliminate pollution, where there is no emissions trading system (or market) involved.
New rules for Article 6.8 activities are important, because non-market approaches:
• Allow nations to cooperate to secure a faster pace of decarbonization;
• Signal wisdom of policies like climate income, to set strong carbon prices, while fostering green recovery;
• Make room for carbon border adjustments, to ensure climate leaders don’t lose trade to pollution offshoring;
• Increase likelihood of international “floor price” for carbon pollution;
• Recognize regulatory measures that mandate accounting, disclosure, and avoidance of carbon-related liabilities;
• Create conditions for climate-smart, nature-positive financial instruments;
• Link Special Drawing Rights (SDR) to Paris Agreement action and funding;
• Expand opportunity for mainstreaming of climate-smart finance;
• Invite integration of Earth science data platforms into financial decision-making information flows;
• Empower existing international institutions to become engines for climate action incentives and enforcement.