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Carbon trading

Finance ministers should step up efforts for climate action

Petteri Orpo's picture
Photo: Mariano Mantel/Flickr

By Petteri Orpo, Minister for Finance, Finland 

Climate change already has many negative impacts with wide-ranging effects. According to the International Monetary Fund (IMF), global warming is significantly slowing economic growth in African countries while the population is growing rapidly. Climate change increases poverty and conflicts, as well as migration pressure.

It’s time to act. In terms of scale, the solution to the climate crisis is an exceptional challenge in the history of humankind. Emissions must be reduced quickly in all sectors of the economy.

Shaping the Next Generation of Carbon Markets

Rachel Kyte's picture

 Smoke coming out of two smokestacks at a factory in Estonia. - Photo: World Bank/Flickr

Right now, the carbon markets of the future are under construction in all corners of the world.

China is determined to pursue low-carbon development and is embracing the market as the most efficient way to do so. Wang Shu, the deputy director of China's National Development and Reform Commission, told us this week that he sees the "magic of the market" as the most efficient way to drive China's green growth.

Five Chinese cities and two provinces are piloting emissions trading systems with the goal of building a national carbon market. Chile is exploring an emissions trading system and focusing on energy efficiency and renewable energy. Mexico is developing market-based mechanisms in energy efficiency that could cut its emissions by as much as 30 percent by 2020. Costa Rica is aiming for a carbon-neutral economy by 2021.

Each of the countries pioneering market-based mechanisms to reduce their domestic carbon emissions are leaders. Bring them together in one room, and you begin to see progress and the enormous potential for a powerful networking domestic system that could begin to produce a predictable carbon price -- a sina que non for the speed and scale of climate action we need.

That's happening this week at the World Bank.

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