The latest report of the IPCC is clear: the window of opportunity to reverse global warming is shrinking. Our economies must go through profound transformations at increasing speed and scale. Although carbon pricing has gained prominence worldwide as one of the key policies to foster decarbonization, setting any price may not be enough anymore.

According to leading experts of the High-Level Commission on Carbon Prices, we need at a minimum a carbon price between US$40–80/tCO2 by 2020 to unlock its true potential and limit global warming to 2°C. While by 2021, carbon pricing instruments will cover 20 percent of global emissions, to date, only around 3 percent of those emissions fall within this range. These figures show the adoption of ambitious carbon prices is still very limited. This may result from factors such as weak social support and strong lobby from the industry sector.

In our blog 'Ambitious carbon pricing and a just transition should go hand in hand' Ana María Arbeláez and Carolina Inclan discuss how carbon pricing can support a green economic recovery and embracing social fairness and environmental justice.

Read the full blog.