Paris, 12 December – Today, on the occasion of the One Planet Summit, government leaders of
Canada, Colombia, Chile, México, the Governors of California and Washington, and the Premiers of Alberta, British Columbia, Nova Scotia, Ontario and Quebec launched the Carbon Pricing in the Americas cooperative framework where climate leaders rea ffirm their commitment to the Paris Agreement by pledging to implement carbon pricing as a central policy instrument for climate change action; deepen regional integration of carbon markets across the hemisphere; develop carbon policies that support competitiveness, encourage innovation, create jobs, provide healthy environment for its citizens, and deliver meaningful emissions reductions.
This new initiative on regional cooperation comes at a pivotal time for climate action and carbon pricing – with eight new or enhanced carbon pricing initiatives in place since early 2016 - three quarters of them in the Americas (Colombia, Chile, and several Canadian provinces) – there are now 42 national and 25 sub-national jurisdictions putting a price on carbon emissions.
The Carbon Pricing in the Americas cooperative framework builds on the sustainability commitments established by member countries of the Pacific Alliance and the ongoing efforts of Canada and California to accelerate efforts towards clean growth.
The Carbon Pricing in the Americas will serve as the platform for countries in the Americas to take on the climate challenge using the most cost-efficient path. According to a 2016 World Bank report, greater cooperation through carbon trading could reduce the cost of climate change mitigation by 32 percent by 2030.
As the working group “Carbon Pricing in the Americas (CPA)” sets to identify opportunities to increase alignment of carbon pricing systems and promote carbon markets; the private sector will have an instrumental role to play. Companies that apply a carbon price, can effectively manage their climate risk exposure and use this to their advantage to generate superior profitability and more earnings stability.
Quotes from Leaders:
Michelle Bachelet President of Chile
Our economies must stop denying climate change. When we incorporate climate change through carbon pricing we allow market forces to push climate action. When we align economic and environmental goals we make sustainable development inevitable. That is why we are happy that carbon pricing is spreading across the Americas, so that more people can benefit from market driven climate mitigation.
Enrique Peña Nieto, President of Mexico
The pilot phase of our carbon market is scheduled to initiate on the second half of 2018. This is an unprecedented step in Mexico and Latin America. By adopting this Declaration, we recognize the enormous potential of collaboration in the continent, to continue broadening, deepening and linking our carbon markets.
Manuel Gonzalez Sanz, Minister of Foreign Affairs of Costa Rica
Costa Rica has a long history of recognizing the economic value of environmental services as key aspect of our environmental policy, both at home and abroad. We are proud to adopt this Declaration and look forward to continue working with our friends and colleagues to find ways to strengthen the connections between carbon pricing, transparency and ambition in support of the goal of the Paris Agreement.
Iain Rankin, Environment Minister, Nova Scotia
“Nova Scotia has worked hard to reduce greenhouse gas emissions. We can be proud of what we’ve accomplished, and through our new cap and trade program, we will keep contributing to the global effort on climate change. We are happy to be working with other countries, states and provinces to reduce greenhouse gas emissions”
As co-conveners of the One Planet Summit, Emmanuel Macron President of France, Jim Yong Kim, President of the World Bank Group, and António Guterres Secretary-General of the United Nations welcomed the initiative and stated.
Jim Yong Kim, President, World Bank Group
As the world comes together to reaffirm its commitment to the Paris Agreement, we welcome the Carbon Pricing in the Americas cooperative framework. Carbon pricing provides the most stable, cost-efficient and predictable path for transitioning countries toward low-carbon economies. The World Bank Group stands ready to support countries in the Americas as they work together to implement carbon pricing for ambitious climate action.
Other supportive quotes:
Ban Ki-moon, former Secretary-General of the United Nations
Carbon pricing is a critical quantum jump for the much-needed fundamental transformation towards low carbon future. Carbon Pricing of the Americas will unleash market forces to drive climate innovations and solutions. This unprecedented unique initiative should lead the Global Coalition for Carbon Pricing as was called for in 2015 by the Paris Climate COP President Hollande
Kofi A. Annan, Chair of the Kofi Annan Foundation
I welcome this engaging initiative for climate change action. By putting a price on carbon, we are setting the right incentives to green our economies and accelerate the shift towards clean and efficient sources of energy.
Feike Sijbesma, CEO of Royal DSM, World Bank Climate Leader and co-chair of the Carbon Pricing Leadership Coalition
The collaboration of leaders across the Americas is an important milestone. A famous expression is “If you want to go fast, go alone. If you want to go far, go together.” Fortunately, when governments collaborate on carbon pricing, this incentivizes the private sector to go not only further, but faster too! Many companies in the Americas are already future-proofing their business by putting an internal price on carbon, and I would encourage more to join us. At DSM, we apply already an internal price of €50/ton CO2. A price on carbon unlocks the potential of the private sector, like business and investors to contribute more and faster to addressing climate change by ensuring an economic incentive.
Dirk Forrister, President and CEO, International Emissions Trading Association (IETA)
IETA wholeheartedly supports the commitment of governments across the America’s to form a cooperative framework to integrate their carbon markets in the future. The rising interest in market based solutions around the world will help mobilize business to advance the Paris Agreement’s goals while preserving competitiveness. IETA congratulates the signatories for their vision and pledges to help the signatories meet the objectives of this important declaration.
Fred Krupp, President, Environmental Defense Fund (EDF)
Coming two years to the day after the Paris Agreement was adopted, the Carbon Pricing Declaration of the Americas shows what the Paris accord made possible: A new model of international cooperation that brings countries together with states and provinces to raise global ambition on climate action and move the world closer to a future of low-carbon prosperity. Carbon pricing is already working to reduce greenhouse gas emissions and spur clean energy innovation in California and Quebec. This declaration paves the way to spread those benefits throughout the Americas, positioning the region as a leader in the fight against climate change. Environmental Defense Fund applauds the signatories for their leadership and looks forward to supporting the implementation of the Declaration.
The Carbon Pricing of the Americas initiative drives action to strengthen the implementation of carbon pricing as a central policy instrument for climate action and the shift to clean energy, innovation and the promotion of sustainable economic development. This initiative strengthens the alignment of carbon pricing systems and introduces harmonized systems for measurement, reporting, and verification (MRV) of greenhouse gas emissions, as a necessary foundation for regional cooperation, and development, of carbon markets within the Americas.
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