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Why Investors Support a Price on Carbon

Global Investor Coalition on Climate Change's picture

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Generating clean energy in New Zealand. Jondaar_1/Flickr Creative Commons

By Stephanie Pfeifer, Institutional Investors Group on Climate Change (Europe); Nathan Fabian, Investor Group on Climate Change (Australia/New Zealand); Chris Davis, Investor Network on Climate Risk (North America); and Alexandra Tracy, Asia Investor Group on Climate Change.


The British economist Lord Nicholas Stern has labelled climate change “the greatest market failure the world has ever seen.” Failing to put a price on carbon emissions leaves the market with no way to address the harm created by these emissions. And with no cost attached to a harmful activity, participants in the market have no incentive to pursue less harmful alternatives. Thankfully, this is changing.

About 40 national and more than 20 sub-national jurisdictions globally have implemented or are scheduled to implement carbon pricing schemes. The world’s emissions trading schemes are valued at about $30 billion, with China home to the world's second largest group of carbon markets, covering the equivalent of 1,115 million tons of carbon dioxide emissions, after the 2,309 million tonnes covered by the EU’s Emissions Trading Scheme.

This progress is good news, and furthering the spread of carbon pricing is essential. Putting a price on carbon reduces emissions and the costs associated with these emissions, costs that end up being borne by everyone, including companies and societies, through an array of impacts resulting from climate change.

AVN Wins Dubai International Award for Best Practices!

Tony Kaye's picture

Association La Voute Nubienne (AVN) LogoAssociation La Voûte Nubienne (AVN) was awarded a DM grant in 2009 to test an innovative strategy for scaling up and accelerating the recruitment and training of Nubian Vault (NV) apprentices and the growth of a self-sustaining market in NV houses in Burkina Faso. The Nubian Vault is an ancient Egyptian technique of building vaulted roofs made from local bricks without using any wood, instead of typical tin roofs that are more expensive and use scarce wood during construction. AVN is transforming traditional housing available in the harsh climate of the Sahel region by providing a sustainable housing alternative and helping to avoid further deforestation.

AVN has won one of the Dubai International Award for Best Practice (DIABP) to Improve the Living Environment. The Award, co-sponsored by UN-Habitat, specifically recognised the program in Burkina Faso for 'best practice transfer'.

The DIABP was established under the directives of late Sheikh Maktoum Bin Rashid Al Maktoum, during the United Nations International Conference in Dubai in November, 1995 with 914 participants from 95 countries, to recognize the best practices with positive impact on improving the living environment.

Cambodia's Relative Peace Brings the Challenges of Growth

Stéphane Guimbert's picture

Workers scale one of the skyscrapers under construction in Cambodia.
Last Sunday, more than 8 millions Cambodians were called to vote. This is already the fourth general elections since the 1991 Paris Peace Agreement. Many – including me before I moved to our Phnom Penh office last summer – still connect Cambodia first to what we learned in history classes. The splendor of the Angkor civilization and the atrocities of the Khmer Rouge regime probably come on top of the list. And there is some truth to that. Angkor Wat and its neighboring temples remain magnificent. The Khmer Rouge regime has left deep stigma for the people and for the society. The Khmer Rouge tribunal is attracting a lot of international attention as well. Most landmine fields have been cleared, although there remain some in more remote areas.

But, for all this, this connection more and more misses a key fact: over the last couple of years, Cambodia has achieved a relative peace that has enabled dramatic social and economic change.