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THEMA: Green Climate Fund as leverage for carbon price talks

Green Climate Fund as leverage for carbon price talks 1 Jahr 1 Woche her #1

  • Gregor Luthe
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The Paris Agreement aims to limit the increase in the...

The Paris Agreement may well fail if signatory countries do not agree on mutual obligations and sanctions. Currently there is the danger that countries behave as free riders if national emission reductions are not rewarded internationally. Coordinating national carbon prices can counteract these adverse incentives. To support poorer countries in setting a minimum carbon price, the Green Climate Fund could play a key role by compensating countries when they increase their national price level. The resulting revenues from carbon pricing would add to governmental budgets. The Mercator Research Institute on Global Commons and Climate Change (MCC) proposes this in a recent discussion piece.
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