G20 CARBON PRICING: GLOBAL SOUTH PROSPECTS

The Environmental Defense Fund (EDF) and Observer Research Foundation (ORF) on Tuesday unveiled their collaborative report, titled "Navigating Carbon Pricing: The G20 Experience and Global South Prospects," to highlight the "complex landscape" of carbon pricing.

This comprehensive analysis explored its application within the G20 nations and potential implications for emerging economies in the Global South.

"Carbon pricing mechanisms are evolving as a prominent instrument in the fiscal policy toolkit of governments to reduce emissions as well as augment government revenues. This growth in its wider usage, from its early adoption within European climate policy, mirrors the increasing commitment from major economies, particularly in developing mitigation instruments that can be supportive of domestic mitigation," stated the release from EDF and ORF.

The report also reviewed existing evidence, which indicates that the social impacts of existing carbon pricing regimes have largely been overstated and that, where such impacts are evident, there are design elements that can mitigate and reverse any negative social and income effects of the proposed carbon pricing instruments.

In a significant analysis, the report provides a thorough examination of various carbon pricing instruments globally, offering valuable insights into their socio-economic challenges. It emphasizes the need for effective strategies for climate change mitigation across industrialized and emerging economies.