Energy companies plead for Paris agreement on carbon pricing

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he world’s leading energy companies and investors, represented by the World Energy Council, have made it crystal clear they consider carbon pricing essential to generate sufficient investment for a low-carbon future, writes Joan MacNaughton, Chair of the World Energy Trilemma project of the World Energy Council.

Joan MacNaughton.



But according to MacNaughton, it is vital that policymakers in Paris don’t just put a price on carbon, but also allow for market mechanisms  as part of any international climate agreement. Preferably, these mechanisms should be linked to each other and allow for forms of offsetting, so that companies can buy credits if they can’t reduce emissions.

As we approach the climate talks known as COP 21 in Paris at the end of the year, we need to focus on how we can drive investment decisions which deliver a more sustainable energy future. A key question is whether market mechanisms will be agreed by the negotiators as part of the agreement architecture, whether they will be linked, and whether offsetting will feature. I believe it is vital that this should be the case. And the option of voluntarily using offsetting needs to extend to businesses to maximise their contribution to emissions reduction.

Read the energypost story - “Paris, give us carbon pricing, but give us market mechanisms too!”