LONDON- Investors managing more than $6 trillion in assets on Tuesday called for a co-ordinated global price on carbon and said emissions costs would need to almost treble by 2030 to reach the world’s climate goals.
The call by the The Net Zero Asset Owner Alliance, whose 43 members include some of the world’s biggest pension schemes and insurers, comes ahead of the next round of global climate talks in November.
Currently, some 64 carbon pricing instruments such as emissions trading schemes or taxes are in use globally, covering just 21 percent of global greenhouse gas emissions, a May report by the World Bank said.
But even within these schemes prices can vary greatly.
The piecemeal approach makes it hard for global investors and companies to manage risk and plan over the long term, particularly in the development and adoption of new technologies needed to accelerate the low-carbon transition.
Given that, and to have any hope of limiting global warming to 1.5 degrees Celsius above pre-industrial norms, the goal of the Paris Agreement on climate, the group suggested a hybrid model between emissions trading schemes and taxes or levies.
