Make carbon pricing the cornerstone of climate policy, says the OECD

Countries should make carbon pricing the cornerstone of climate policy, says the OECD.

Releasing the report, Climate and carbon: Aligning prices and policies, OECD secretary-general Angel Gurría said that a transformation of the global energy system is needed if countries hope to limit climate change to a 2?C temperature increase from pre-industrial levels, as agreed by the global community.

He called for a coherent approach to carbon pricing, to ensure that price signals sent to consumers, producers and investors alike are consistent and facilitate the gradual phase-out of fossil fuel emissions. He also questioned how much impact existing climate policies can have when countries around the world continue to subsidise the exploration, production and use of fossil fuels.

“Whatever policy mix we put in place, it has to lead to the complete elimination of emissions to the atmosphere from fossil fuels in the second half of the century,” Gurría said. “We don’t need to see zero net emissions tomorrow, but we will need to be on the pathway.”