This document deals with the importance of international cooperation in the field of carbon pricing as a key tool to achieve the goals of the Paris Agreement on climate change. The document highlights that while there are a number of initiatives to support carbon pricing, progress in their implementation has been slow, particularly in developing countries.

The document focuses on the following key aspects:

• Connecting ambitions with actions: The paper analyses whether international cooperation can help bridge the gap between ambitious climate goals and their actual implementation. It points to studies that suggest that global use of carbon markets could double climate mitigation efforts. However, it also warns that there is still a lack of emphasis within the UN on the possibilities for international cooperation on carbon pricing.
• Current status of carbon pricing: The paper provides an overview of the current state of carbon pricing at both the domestic and international levels. It notes that most existing carbon pricing mechanisms are located in developed countries, while implementation in developing countries has been slower. The paper identifies several international initiatives that are trying to fill this gap, including those led by international organizations (such as the World Bank, OECD and UNDP) and those led by individual countries or groups of countries (such as ICAP, GCPC, A6IP and the Florence Process).
• Obstacles and convergence: The document identifies obstacles to the effective implementation of carbon pricing and highlights the need for better coordination between existing initiatives. It also highlights the importance of building capacity in developing countries and ensuring compatibility between different carbon pricing systems.
• Recommendations: Based on the analysis, the document formulates specific recommendations to strengthen international cooperation on carbon pricing. These recommendations include:
  • Providing financial and technical assistance to developing countries to build their capacity in carbon pricing.
  • Supporting developing countries in implementing domestic carbon pricing mechanisms, such as emissions trading systems and carbon taxes.
  • Ensuring a minimum level of compatibility between emission allowance markets and credit markets.
  • Improving coordination and integration between existing international initiatives.
  • The active role of the G20 in connecting developed and developing countries in international cooperation.

The document emphasizes that Carbon pricing is a key tool for mitigating climate change and that international cooperation is essential for its successful implementationHowever, it also points out that existing initiatives need to be better coordinated and focused on supporting developing countriesto ensure the achievement of the goals of the Paris Agreement. The full document is available here