Carbon pricing: a key instrument to facilitate low carbon transition

This paper discusses how carbon pricing can facilitate a low-carbon transition, or a further net zero carbon transition, responding to the Paris Agreement. There is a strong synergy between carbon pricing and the Paris Agreement; the call for ambitious climate actions through carbon pricing by both heads of governments and CEOs of leading companies gave momentum to raise the level of ambition of the Paris Agreement, and ambitious climate goals stipulated in the Paris Agreement build momentum to introduce carbon pricing as a key instrument to attain the climate goals. As of September 2015, 40 countries and 20 cities/states /regions have introduced carbon pricing schemes which represent almost a quarter of global greenhouse gas (GHG) emissions. In addition, China and Canada will introduce nationwide carbon pricing in the near future.