PwC has recently published in the context of COP26 a study together with the World Economic Forum (WEF) on the international carbon price, which finds that an international carbon price floor would pay for itself and reduce global carbon emissions by 12.5%.

The report presents a quantitative impact assessment of the proposal by the International Monetary Fund to set an international carbon price floor that by 2030 would reach $75 per tonne for high-income countries, $50 per tonne for middle-income countries and $25 per tonne for low-income countries. The implementation of the IMF proposal would reduce global GDP by only 1%, while reducing global emissions by 12.5% and making an important contribution to achieving the climate targets.

The international carbon price floor would also further support the EU CBAM’s objective of preventing carbon leakage by incentivising engagement with lower income countries and incentivising and supporting a fair global transition.

We would like to invite you to a roundtable discussion on:

●      How could an international carbon price agreement be designed and implemented and what economic and environmental impacts would it have.

●      How can the proposals in the Fit for 55 package promote an international carbon price floor.

●      How CBAM can incentivise more countries to adopt market-based ETS systems for carbon pricing that are consistent with the international carbon price floor.

●      The need for an accompanying financial mechanism to direct the revenue generated towards supporting lower income countries to gradually increase the carbon price and reach net zero by 2050 as necessary to achieve the global climate targets.

We welcome an interactive discussion and all participants are invited to intervene during the debate

The meeting took place online.

Workshop materials:

Agenda

• Presentation: PwC report for WEF on IMF’s International Carbon Price Floor Proposal.