The European Commission president, Ursula von der Leyen, has called on G20 leaders to support the implementation of global carbon pricing during the G20 Summit in New Delhi, as reported by Reuters on September 9. Von der Leyen highlighted the success of the European Union’s (EU) Emissions Trading System (ETS), which has contributed to a 35% reduction in emissions since 2005 and generated over EUR152bn (USD162.6bn) in revenue. She also emphasized the need for increased revenues to support climate-related initiatives. This appeal echoes her previous call to action made during a summit in Paris in June, where she urged the international community to explore options for implementing global carbon pricing to facilitate the transition to a lower-carbon economy.

According to a World Bank report, there are currently 73 carbon pricing instruments in operation worldwide, covering approximately 23% of global greenhouse gas emissions. Von der Leyen pointed out the significant disparities in the impact of climate change, with G20 nations responsible for 80% of global emissions, while Africa, which is disproportionately affected by climate change, accounts for less than 4% of emissions. In response to these disparities, the EU introduced the ‘Call for Action for Paris Aligned Carbon Markets’ initiative, which aims to encompass at least 60% of global emissions through carbon pricing mechanisms. A substantial portion of the revenue generated from these mechanisms will be allocated to support green technologies and assist vulnerable communities in developing countries and emerging markets.

Sources:

https://www.reuters.com/sustainability/eu-commission-chief-asks-g20-join-global-carbon-pricing-2023-09-09/

https://www.deccanherald.com/world/european-commission-urges-g20-countries-to-set-ambitious-climate-targets-for-2030-2679609