INDUSTRY POSITION ON CARBON PRICING
Following direction from the Investment Committee and with approval of the S&RI Committee, the IA is planning to write a position paper on carbon pricing. Whilst it appears to be almost uniformly agreed that a global carbon price is the most cost-effective way to drive and accelerate decarbonisation across economies, the vast majority of carbon emissions are currently unpriced, with only 20% of greenhouse gasses subject to a carbon pricing initiative.
Our paper will look to outline several principles we would like to see incorporated in the UK’s approach to a carbon pricing initiative. These include:
1) It being applied fairly across all sectors of economy
2) Social cost considerations and potential mitigations – a ‘just transition’