G20 recognises carbon pricing as climate change tool for first time

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Sustainability
More than 110 countries person  committed to becoming c  neutral by mid-century, including major More than 110 countries person committed to becoming c neutral by mid-century, including large greenhouse state emitters specified arsenic Britain, Japan and South Korea. (Photo: AFP/Ina Fassbender)

11 Jul 2021 09:01AM (Updated: 12 Jul 2021 06:02PM)

VENICE: G20 concern leaders recognised c pricing arsenic a imaginable instrumentality to code clime alteration for the archetypal clip successful an authoritative communique connected Saturday (Jul 10), taking a tentative measurement towards promoting the thought and coordinating c simplification policies.

The determination marked a monolithic displacement from the erstwhile 4 years erstwhile erstwhile US President Donald Trump's medication routinely opposed the notation of clime alteration arsenic a planetary hazard successful specified planetary statements.

The communique, issued connected Saturday aft a gathering of Group of 20 concern ministers and cardinal slope governors successful the Italian metropolis of Venice, which is threatened by rising oversea levels, inserted a notation of c pricing among a "wide acceptable of tools" connected which countries should coordinate to little greenhouse state emissions.

Such tools see investing successful sustainable infrastructure and caller technologies to beforehand decarbonisation and cleanable energy, "including the rationalisation and phasing-out of inefficient fossil substance subsidies that promote wasteful depletion and, if appropriate, the usage of c pricing mechanisms and incentives, portion providing targeted enactment for the poorest and the astir vulnerable", said the communique from the fiscal leaders of the world's 20 large economies.

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The connection was issued conscionable days earlier the European Union was scheduled to unveil a arguable carbon-adjustment borderline taxation connected goods from countries with precocious c emissions.

"It is the archetypal clip successful a G20 communique you could person these 2 words 'carbon pricing' being introduced arsenic a solution for the combat against clime change," French Finance Minister Bruno Le Maire told reporters. "We person been pushing precise hard to person these 2 words ... introduced into a G20 communique."

REVERSAL OF TRUMP-ERA INITIATIVES

Those efforts met beardown US resistance for astir of Trump's presidency, during which the United States rapidly withdrew from the Paris clime agreement.

At a acme successful Saudi Arabia successful 2020, then-US Treasury Secretary Steven Mnuchin agreed to a G20 notation to clime change, but not arsenic a downside hazard to planetary growth. Instead, it was included successful a notation to the Financial Stability Board’s enactment examining the implications of clime alteration for fiscal stability.

The c pricing notation connected Saturday marks the power of the Biden administration, which instantly rejoined the Paris statement successful January and has acceptable retired ambitious c simplification targets and cleanable vigor and proscription concern plans.

But portion supporting emissions reductions, US Treasury Secretary Janet Yellen called connected Friday for amended planetary coordination connected carbon-cutting policies to debar commercialized frictions.

SINGAPORE'S CARBON TAX

Singapore Finance Minister Lawrence Wong connected Monday said the satellite indispensable travel unneurotic to enactment urgently connected clime change.

“The existent mean planetary emissions terms of US$3/tonne is excessively low. One thought being mooted astatine the G20 is to person a planetary minimum level terms for carbon, and to acceptable it astatine a higher level crossed the board. 

"Naturally, countries volition person their ain considerations arsenic to wherever the close terms should be, and it volition instrumentality immoderate clip to forge an planetary statement connected this,” helium said successful a Facebook post.

He added that Singapore already has a c tax, and that the Government is present reviewing the level and trajectory of the c tax, and volition instrumentality these planetary developments into information successful its review. 

“We volition proceed to trim our emissions and c footprint, and bash our portion to lend to the wide efforts to decarbonise the planetary economy,” said Mr Wong, who attended the G20 gathering successful Venice. 

The EU's c borderline accommodation mechanics would enforce levies connected the c contented of imported goods successful an effort to discourage "carbon leakage", the transportation of accumulation to countries with little onerous emanation restrictions. Critics of the measurement interest that it could go different commercialized obstruction without reducing emissions.

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