Canada builds momentum and welcomes additional champions to the Global Carbon Pricing Challenge

NEW YORK, Sept. 20, 2023 /CNW/ - As people in Canada and around the world face the devastating realities of climate change?from wildfires to floods to heatwaves?this is the moment to raise our ambition on climate action.

Today, during the Climate Ambition Summit at the United Nations, Prime Minister Justin Trudeau and Steven Guilbeault, Minister of Environment and Climate Change, were joined by other world leaders to affirm their commitment to carbon pricing and call for its expansion in order to accelerate global climate action and decarbonization. Together, they welcomed Norway and Denmark as new members of the Global Carbon Pricing Challenge, and the Côte d'Ivoire as a Friend of the Challenge.

The Global Carbon Pricing Challenge, launched by Prime Minister Trudeau at COP26, is a partnership of carbon pricing champions committed to accelerating climate action by setting an ambitious goal: tripling the coverage of carbon pricing mechanisms around the world to reach 60 percent of global emissions by 2030.

Countries around the world recognize that a price on carbon pollution is the most effective way to drive innovation while reducing the emissions that cause climate change. Pricing systems can be designed to return money back to families?as is the case in Canada?and grow strong, competitive economies. The impact and effectiveness of carbon pricing increases as more countries adopt pricing solutions. Through international co-operation, countries can send consistent signals to investors that pollution cannot be free.

The Global Carbon Pricing Challenge has attracted support from countries and organizations around the globe. It has boosted awareness of the role of carbon pricing in decarbonization, and its flexibility and adaptability to support multiple objectives, such as economic development and equity. The Challenge serves as a driver for accelerating the adoption of carbon pricing, and as a forum for supporting countries as they develop and implement their carbon pricing systems.

Canada stands with Norway, Denmark, the United Kingdom, Chile, New Zealand, the Republic of Korea, and Germany as countries that have pricing systems in place, or under development, and that are committed to exploring opportunities to expand and strengthen their systems and support emerging ones. Colombia and Vietnam were also recognized among those nations that support the Challenge's goals and objectives since they have both adopted domestic carbon pricing systems.

Canada encourages more jurisdictions and organizations to step up and join the Challenge to help spur momentum and offer technical support to those countries considering carbon pricing. 

The Challenge places special emphasis on supporting developing countries, recognizing the unique situations that they face in addressing climate change. Through its commitment to inclusivity, the Challenge aims to ensure that the benefits of global collaboration extend across diverse economies and circumstances, fostering co-operation in building a low-carbon future.

The Global Carbon Pricing Challenge is supported by a Secretariat that co-ordinates communications and engagement, convenes senior government and non-government leaders, and facilitates the sharing of technical advice and assistance to support jurisdictions at various stages of developing domestic carbon pricing systems.

Together, the Challenge represents the expanding global partnership of champions working together to advance the global conversation on carbon pricing.

Quotes

"The evidence is clear: a price on pollution is one of the most effective tools we have to fight climate change, while growing our economy and making life more affordable for people. That's what we are doing in Canada, and we're going to keep working with other countries, including those who joined us today, to leave a healthy planet for our kids and grandkids."
? The Right Honourable Justin Trudeau, Prime Minister of Canada

"Increased co-ordination of carbon prices globally is crucial for efficient emissions reductions. We must strive toward all emissions being covered, and at levels that reflect our common goals as stated in the Paris Agreement."
? Prime Minister of Norway Jonas Gahr Støre

"Prime Minister Trudeau's Global Carbon Pricing Challenge is a wonderful initiative. It bundles the expertise of the world's most experienced carbon markets and offers this expertise to countries ready to make carbon pricing a central part of their climate strategies. Last June, the Call to Action on Paris-Aligned Carbon Markets invited countries to develop and expand robust carbon market instruments. The more countries sign up to the Call, the closer we move to the 60 percent target of the Challenge. The European Union is looking forward to joining the Challenge soon and team up with other countries. Let us work together to unlock the potential of carbon pricing worldwide, to the benefit of people, and the benefit of the planet."
? President of the European Commission Ursula von der Leyen

"To reach the goals of the Paris Agreement, we need to strengthen co-operation on the most effective solutions. To this end, carbon pricing is a vital instrument. Higher and more uniform carbon taxation can deliver a significant contribution to our climate targets. Denmark is a strong proponent of strengthening emissions trading in the European Union and looks forward to strengthening global co-operation through the Global Carbon Pricing Challenge."
? Prime Minister of Denmark Mette Frederiksen

"The importance of the Global Carbon Pricing Challenge cannot be overstated, standing at the crossroads of environmental responsibility and global progress. The earth's atmosphere is a global commons, and protecting it transcends national boundaries. International collaboration is critical in the fight against climate change. Together, we can create the future we want and need, one where innovation, shared knowledge, and joint determination make us all accountable for a cleaner, more sustainable, and safer world."
? The Honourable Steven Guilbeault, Minister of Environment and Climate Change

Quick facts

• The Global Carbon Pricing Challenge is led by an Advisory Committee of representatives from partner countries and is currently chaired by Canada's Ambassador for Climate Change, Catherine Stewart. Decisions of the Advisory Committee are informed by the analysis and advice of a Technical Working Group of global experts from partners and Friends.
• Partners of the Global Carbon Pricing Challenge are implementing, or scheduled to implement, carbon pricing and are committed to the goal of increasing coverage of carbon pricing to 60 percent of global emissions by 2030.
• According to the World Bank, there are 73 carbon pricing initiatives currently in place across the globe, both national and subnational. Together, these initiatives cover 23 percent of global greenhouse gas emissions.
• Friends of the Global Carbon Pricing Challenge represent jurisdictions or organizations that support the Challenge's goals and objectives, and which may be considering the implementation of explicit domestic carbon pricing systems.
• Canada is recognized internationally as a climate leader, in large part due to robust domestic carbon pollution pricing. Canada's approach gives provinces and territories the flexibility to implement their own carbon pricing systems that best meet their needs while aligning with minimum national standards.
• Canada is one of the few countries to have announced a carbon price trajectory all the way to 2030. Setting a long-term price trajectory sends a strong signal to drive low-carbon investment today and helps put us on a path to net zero by mid-century.
• Canada is boosting its support for the World Bank's Partnership for Market Implementation?which helps countries design, pilot, and implement pricing mechanisms aligned with their development priorities?to $16 million. The Partnership is a linchpin initiative to help advance the goals of the Challenge and help more countries realize the benefits of carbon pricing policies.

Associated links

• The Global Carbon Pricing Challenge
• Carbon Pollution Pricing in Canada

Environment and Climate Change Canada's Twitter page

Environment and Climate Change Canada's Facebook page

SOURCE Environment and Climate Change Canada