State and Trends of Carbon Pricing 2016
Greater cooperation through carbon trading could reduce the cost of climate change mitigation by 32 percent by 2030, according to a new World Bank report released at an international carbon event in Vietnam. New modelling analysis undertaken for the State and Trends of Carbon Pricing 2016 report shows that increased international carbon trading could enable large-scale emissions reductions at much lower cost than at present, based on the carbon mitigation goals spelled out in countries’ national climate plans under the Paris Agreement - the Nationally Determined Contributions, or NDCs. By the middle of the century, an international market has the potential to reduce global mitigation costs by more than 50 percent. The goal of limiting emission reductions to meet a 2°C or lower target will be difficult to achieve cost-efficiently without more carbon trading, according to the report, prepared by the World Bank and launched at the 15th Assembly of the Partnership for Market Readiness.