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Climate and Carbon: Aligning Prices and Policies

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  • OECD
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    Abstract

    The international community has agreed to limit the average global temperature increase to no more than 2ºC above pre-industrial levels. This will require a gradual phase-out of fossil fuel emissions by the second half of this century. This report brings together lessons learned from OECD analysis on carbon pricing and climate policies. It recommends that governments ensure coherent policies surrounding the gradual phase-out of fossil fuel emissions and consistent signals to consumers, producers and investors alike. A key component of this approach is putting an explicit price on every tonne of CO2 emitted. Explicit pricing instruments, however, may not cover all sources of emissions and will often need to be complemented by other policies that effectively put an implicit price on emissions. But the policies must be mutually supportive and as cost-effective as possible, both on their own and as a package. In addition, tax exemptions and fossil-fuel subsidies that undermine the transition towards zero carbon solutions must be reformed. Finally, the report highlights the issues of competitiveness, distributional impacts and communication as key elements in implementing climate policy reform. Climat et carbone : rapprochement de la politique et des prix La communauté internationale s’est accordée sur la nécessité de maintenir l'augmentation de la température moyenne de la planète en deçà de 2º C par rapport au niveau de l'ère préindustrielle. Cela nécessitera une élimination progressive des émissions liées aux combustibles fossiles durant la seconde moitié de ce siècle. Ce rapport rassemble les enseignements tirés de l’analyse de l’OCDE sur la tarification du carbone et les politiques en matière de changement climatique. Il recommande aux gouvernements de s’assurer de la cohérence à la fois des politiques visant à la suppression progressive des émissions liées aux combustibles fossiles, et des signaux envoyés aux consommateurs, producteurs et investisseurs. Un élément clé de cette approche consiste à établir de façon explicite un prix pour chaque tonne de CO2 émise. Toutes les sources d’émissions ne peuvent cependant pas se prêter à une telle approche et il sera nécessaire de faire appel à d’autres mesures établissant un prix du carbone de manière implicite. Les politiques mises en place doivent se soutenir mutuellement et offrir un bon rapport coût/efficacité, à la fois individuellement et collectivement. De plus, il est nécessaire de réformer les exemptions fiscales et les subventions aux combustibles fossiles qui compromettent la transition vers des solutions décarbonées. Enfin, le rapport souligne le rôle clé des questions de compétitivité, des effets redistributifs, ainsi que l’importance de la communication pour mettre en oeuvre la réforme des politiques en matière de changement climatique.

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    File URL: http://dx.doi.org/10.1787/5k3z11hjg6r7-en
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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Environment Policy Papers with number 1.

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    Date of creation: 09 Oct 2013
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    Handle: RePEc:oec:envaac:1-en

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