The Carbon Price Index – A Global Reference for the Evolution of Carbon Prices
realcarbonindex.orgThis really shows how far we have to go.
If you don't have a feel for the level of carbon price that's needed to make major change then $100 is a great rule of thumb.
Working in oil and gas, I know that our industry would make major changes if the global carbon price for scope 1 and 2 emissions was $100/ton. And if scope 3 emissions were included then I suspect oil and gas production would drastically decline, and probably use CCS as the norm.
The current average price put on all emissions in the world comes out at about $3.
In case you're thinking "how could a global carbon price of $100/ton possibly be affordable?" the answer is that $100 for every ton of CO2 emissions in the world is 4.3% of world GDP. And that money doesn't disappear of course, it's simply a transfer from polluters to... whoever you like.
And of course the economic benefit of not destroying the planet is nice.
Notably, one of the world's highest carbon prices is in Sweden, a location that would do just fine with a bit of global warming.
Great comment. TO your point about $100 as a carbon price, there is much academic work which points towards a "social cost of carbon" at $1,000-+ per tonne. This would be the impact downstream it we don't get our act together now and start paying. With that in mind, $100 is a small price.
Indeed, carbon price alone cannot lead us to a net-zero world. It is only a part of the solution – a considerably big part. Yet, the inaction from the 79% of the world with no mandatory carbon pricing puts a question on how willing we really are to solve the problem.
Of that 79%, there is a group who will never engage. How do we address the remainder?