How Is KR 7.3 Tracking?
Most countries have yet to set a national price on carbon emissions. Among the one hundred-plus pricing mechanisms in place worldwide, most are sector-specific and lack economy-wide reach. Moreover, many are set at prices too low for meaningful impact. The European Union is the standout adopter, with a carbon price exceeding $80 per ton.
To incentivize and accelerate emissions cuts, our Price on Carbon KR calls for each country to impose a fee on planet-warming emissions. A substantial carbon price, rising each year, would make fossil fuel energy less and less competitive with clean alternatives.
Implementation would vary from country to country. Advanced economies should set a minimum price of $75 per ton and raise it 5 percent annually, a formula that will get them to $280 per ton by 2050. Emerging economies could set lower prices to start.