Leaders across the Americas have pledged to step up the use of carbon pricing as a key instrument of economic and environmental policy to reduce carbon emissions.
The initiative, announced at the One Planet Summit in Paris, will apply a cost of carbon to guide public investment decisions in relevant jurisdictions, and encourage private companies to do the same through internal carbon pricing.
Canada, Chile, Colombia, Costa Rica, and México, as well as the Governors of the US states of California and Washington and the Premiers of the Canadian provinces of Alberta, British Columbia, Nova Scotia, Ontario and Quebec, came together to launch the new Carbon Pricing in the Americas cooperative framework.
Reaffirming their support for the Paris Climate Change Agreement as a necessary step towards fighting climate change, the leaders have agreed to collaborate to strengthen systems for measurement, reporting, and verification of greenhouse gas emissions and emissions reductions.
A substantial reduction in carbon emissions is essential to achieve the central goal of the Paris Agreement, which is to limit the rise of global average temperatures to well below 2 degrees Celsius and as close as possible to 1.5 degrees.
The newly launched initiative will:
- Implement carbon pricing as a central economic and environmental policy instrument for ambitious climate change action
- Apply a cost of carbon to guide public investment decisions in our jurisdictions, and encourage private companies to do the same through internal carbon pricing, according to national and subnational governments’ capacities and legal frameworks
- Create the platform for cooperation on “Carbon Pricing in the Americas (CPA)” among jurisdictions, inviting the support from the World Bank, the Partnership for the Market Readiness and other relevant partners, institutions and organizations, to identify and work in opportunities to increase alignment of carbon pricing systems and promote carbon markets, in order to maximize climate action while ensuring real progress on reducing greenhouse gas emissions
- Collaborate to strengthen systems for measurement, reporting, and verification (MRV) of greenhouse gas emissions and emissions reductions, in alignment with global provisions of MRV, as a necessary foundation for the coordination of carbon markets within the Americas.
- Explore the development of common standards to ensure the environmental integrity of international carbon pricing mechanisms
- Strengthen international and regional collaboration and cooperation in an effort to share lessons and improve technical capacity of the public and private sector
Read the declaration here.