Carbon price

DEFINITION: A pricing system that encourages polluters to reduce their greenhouse emissions by charging for CO2 emitted into the atmosphere. A carbon price usually comes in the form of a carbon tax, or a cap-and-trade system, which allows companies a limited, and falling, number of emissions permits.

See also: Carbon budget

See also: Carbon footprint

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Carbon pricing can accelerate the transition from polluting technologies to clean ones, by making the former more expensive

International carbon price floor could cut global emissions by 12% this decade, report finds

Putting an agreed international price on carbon could help deliver a 12.3% cut in global emissions by 2030, an important new report has found. At present, many nations have no carbon pricing, with most that do having prices below the level needed to combat the climate crisis.

Following COP26, the CCC has called on the UK Government to strengthen domestic and international approaches to reaching net-zero

Climate Change Committee: UK Government needs to 'raise ambitions' on reaching net-zero

The UK's climate watchdog has called on the UK Government to deliver a "genuine increase in ambition" to reach the measures detailed in the new Glasgow Climate Pact at COP26, including the submission of new emissions targets, rewriting the tax system to phase-out fossil fuels and strengthening international collaboration between countries.

edie outlines what can be expected and what needs to happen at COP26

Make or Break: 5 key talking points that will determine the success of COP26

COP26 is upon us. Postponements, political unrest and climate laggards being slow to join the table has left negotiations in a precarious yet achievable position. Here, edie summarises the key discussion points that could make or break COP26.

Around 1.7% of GDP derived from taxes on fossil fuels

Net-Zero Review: Carbon pricing won't offset tax revenue losses from fossil fuels

On the day that the UK's Net-Zero Strategy was published, the Treasury has warned that policies must be put in place to address a £37bn deficit that could arise from a loss of tax revenue as the shift away from fossil fuel continues.

The CCAG is calling for a revamp of carbon pricing policies and mechanisms

Scientists call for revamped and increased carbon pricing

A group of climate scientists has called for a complete revamp of carbon pricing mechanisms in the build-up to COP26 to ensure that they actively reflect the scale of action required to respond to the climate crisis and enable businesses to deliver deep emissions cuts.

Pictured: A carbon capture array. Image: Climeworks

$6.6trn investor coalition calls for massive investment in carbon removal solutions

An influential coalition of investors, representing $6.6trn in assets, is calling for a rapid scale-up of global investment into carbon removal solutions, to the extent that their capacity is more than ten times higher in 2050 than 2025.

The paper are for the UK government to raise the minimum threshold for Energy Performance Certificate (EPC) ratings required to lease or sell a property

UK's retrofit industry must grow by ten times to play role in reaching net-zero

The UK's retrofitting industry needs to grow by ten times its current size if the UK is to decarbonise its housing stock at a pace suitable for the wider net-zero emissions target, new research has revealed.

The first priority of the body is to finalise the creation of the Core Carbon Principles (CCPs)

New governing body formed to oversee voluntary carbon markets

The Taskforce on Scaling Voluntary Carbon Markets has announced the formation of an independent governance body for carbon markets and credits that will aim to set a global benchmark in proving the social value and carbon reduction potential of carbon credits and offsetting.

Construction of the base is scheduled for later this year, with completion set for late 2022

Dogger Bank: World's largest windfarm's operations base to be net-zero carbon

The Dogger Bank Wind Farm, off the North East coast of England, will have its new operations and maintenance (O&M) base constructed and operated under recognised standards for net-zero buildings.

Reaching the EU’s 2030 climate goal will require a significant build-up in the production of renewable electricity, which is needed to feed the electrolysers generating green hydrogen

EU's green hydrogen plans hailed as 'true game-changer' by industry

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According to the paper, some 80% of global annual emissions are not covered by carbon pricing mechanisms

Carbon prices must treble by 2030, $6.6trn investor coalition urges

The UN-convened Net-Zero Asset Owner Alliance, whose members manage $6.6trn of assets, is warning that the world won't decarbonise rapidly enough to deliver the Paris Agreement without a "radical overhaul" of carbon pricing.

The new UK ETS is the world's fourth-largest in terms of volume

UK ETS: Post-Brexit carbon market opens for first time with carbon price topping £50 per tonne

The UK's carbon price has hit £50 as the nation's post-Brexit emissions trading scheme (ETS) opened for the first time on Wednesday morning (19 May).

Orsted, the operator of the pictured Horns Rev 2 offshore wind farm, is named in the report as a leader on corporate carbon pricing. Image: Orsted 

More than one-third of large companies putting a price on carbon internally, CDP finds

A survey of some 6,000 large businesses on carbon pricing has revealed that more than one-third are using an internal carbon price or are planning to implement one by 2023.

A drop in energy demand and increased uptake in renewables are accountable for parts of the decline

Emissions covered by EU pricing markets fell 12% in 2020

Emissions regulated under the European Union's (EU) carbon market decreased by more than 12% last year, with the coronavirus severely limiting energy demand and industrial output.

British Land's portfolio is currently valued at around £14.8bn

British Land confirms approved science-based targets on journey to net-zero

Property development and investment giant British Land has had interim carbon reductions targets to help deliver net-zero emissions approved by the Science Based Targets initiative (SBTi).

Green groups have said this Budget will be "crucial" for setting the UK on a net-zero recovery pathway. Image: Parliament Live TV

Will the 2021 Budget help the UK deliver a green recovery?

Chancellor Rishi Sunak will deliver his second Budget on 3 March. But, faced with the challenge of supporting the economy as the UK completes its lockdown exit roadmap, will the Budget deliver an appropriate response to the climate and nature emergencies?

More than eight billion allowances changed hands through European markets in 2020, a near-20% increase on 2019 levels

Global carbon market grew 20% in 2020

The valuation of the global carbon market grew 20% in 2020, totalling almost €230bn and the fourth consecutive year of record growth, new research has found.

The White Paper builds on the Ten Point Plan and National Infrastructure Strategy

Five things you need to know about the Energy White Paper

After months of delays, the UK Government finally unveiled its Energy White Paper on Monday (14 December) detailing how an overhaul to transport, energy and infrastructure will deliver an "overwhelmingly decarbonised power in the 2030s" on the road to net-zero by 2050.

Green Groups have welcomed the announcement, but more detail is still being required

An 'undisputed urgency to act': Green economy reacts to the Energy White Paper

The Government has unveiled the long-awaited Energy White Paper today (14 December), with green groups welcoming the focus it provides to both job growth and rapid decarbonisation in order to reach net-zero emissions by 2050.

Peter joined Carlsberg's sustainability team in 2019, following several years in sustainability consulting

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each sector faces its own challenges and opportunities in embracing the green recovery

Sector by sector: What are the key ingredients to achieve a green recovery?

Over the past 12 months edie has collected data and spoken to leading sustainability and energy experts on how key UK sectors can achieve a green recovery from the coronavirus pandemic. Here, edie summarises some key themes found in our detailed sector insight reports.

We Mean Business Coalition's chief executive María Mendiluce spoke with edie's content director Luke Nicholls in the Business Pavilion at COP26

María Mendiluce on keeping 1.5C alive and achieving global carbon market deal at COP26

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Links between the UK and EU ETSs could become more challenging over time, if the bloc and UK diverge on climate legislation 

UK carbon trading scheme 'leaves many questions unanswered'

As the UK takes its first steps away from the EU, there are still plenty of open questions about how it will align with Europe on climate policy, and in particular, with the EU's flagship emissions trading scheme (ETS).