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The Net-Zero Asset Owner Alliance (Alliance) has launched an update to its original position from 2022, providing new data on the global spread and effectiveness of carbon pricing instruments. The update reveals that 73 carbon pricing instruments have been implemented or scheduled as of 2023, covering 23% of world emissions. However, the Alliance emphasizes that the instruments vary in price levels and those consistent with reaching Paris Agreement targets cover less than 5% of emissions. As a result, the Alliance is calling on policymakers to integrate carbon pricing into their climate policy toolkits and follow through on their Paris Agreement commitments. The Alliance recommends five design principles, including ensuring appropriate coverage and ambition, delivering a just transition, providing a predictable price signal, minimizing competitive distortions, and promoting international cooperation.
