Putting a price on carbon is a key strategy in the global fight against climate change. A carbon price ensures that mitigation is both market-based and cost-effective. Future linking of different carbon pricing systems further increases their cost-effectiveness and levels the playing field for business. Yet it also entails significant political and technical challenges.
Germany made carbon markets one of its climate policy priorities of its presidency of the G7 group of countries. adelphi supported the German Federal Ministry for Environment, Nature Conservation, Building and Nuclear Safety in this process and developed a study on possible pathways towards a global carbon market. The study analyses three scenarios for globally converging carbon prices and derives recommendations for action for G7 states. In order to link the study to ongoing dialogue processes, adelphi presented key results at a high-level workshop of environment ministries of G7 countries.