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PublicationDistributional Impacts of Carbon Pricing on Households(World Bank, Washington, DC, 2020-05-01) Carbon Pricing Leadership CoalitionCarbon pricing policies that are aligned with the Paris Agreement objectives will have positive and negative socio-economic impacts on society. Impacts of unabated climate change are expected to disrupt economic development and disproportionally affect the poorest parts of the population, especially in lower-income countries. In response, through the Paris Agreement, the international community pledged to limit global warming to well below 2 degrees Celsius above pre-industrial levels. Carbon pricing has been highlighted as a crucial prerequisite for effective climate change mitigation. Carbon pricing is essentially a payment required to emit one ton of CO2 into the atmosphere. This makes production or consumption of carbon-intensive goods and services more expensive. While carbon pricing policies aim to shift behavior towards low-carbon alternatives, they can also result in unintended distributional effects for households, especially when lower-cost alternatives are not available. The negative distributional impacts can be offset through specific policy design choices, but efforts to do so should not undermine the goal of incentivizing emissions reduction. PublicationSimulating Carbon Markets(World Bank, Washington, DC, 2020-04) Carbon Pricing Leadership CoalitionCarbon market simulations are programs, models, virtual environments, and/or games that allow stakeholders to participate in a simulated process of designing or participating in an ETS. They are a low-cost and low-risk option of building capacity for both policymakers and regulated companies. The experiential learning processes these tools enable serves to increase ETS literacy, helps build support for ETS as a policy option, and illustrates how policy outcomes are a function of design. Importantly, ETS simulations can provide an opportunity for different stakeholdersto build relationships, mutual understanding and trust, all of which are key prerequisites for working together on policy design and implementation. Finally, these tools provide stakeholders with a safe and risk-free opportunity to try out new ideas, make mistakes, and to learn lessons which can serve to speed the adoption of effective ETSs. PublicationReport of the High-Level Commission on Carbon Pricing and Competitiveness(World Bank, Washington, DC, 2019-09-21) Carbon Pricing Leadership CoalitionThe potentially adverse impact of carbon pricing on the competitiveness of businesses and economies has been a matter of concern to industry and policymakers. It has also been a barrier to progress on carbon pricing. The Carbon Pricing Leadership Coalition launched the High-Level Commission on Carbon Pricing and Competitiveness at its 2018 High-Level Assembly to address the issue. This report showcases dialogue among business leaders to explore the evidence base, the concerns of business, and the lessons learned in the design and implementation of carbon pricing policies in the context of competitiveness. PublicationThe Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges(International Emissions Trading Association, University of Maryland, and Carbon Pricing Leadership Coalition, Washington, D.C., 2019-09) Edmonds, Jae; Forrister, Dirk; Clarke, Leon; de Clara, Stefano; Munnings, ClaytonThis technical paper investigates the potential economic and environmental outcomesassociated with the use of Article 6 of the Paris Agreement by participating countries.The extent to which countries use Article 6, and how they use it, will be informed by design choices agreed upon by negotiators in forthcoming Conference of the Parties (COP) meetings, particularly the next one to be held at COP 25 in Chile and by the agreements made between participating parties. We use the Global Change Assessment Model (GCAM), an integrated assessment model, to quantify the economic potential of Article 6. We go on to discuss real world considerations and potential implications of design choices currently under consideration by negotiators. We find that Article 6 has the potential to reduce the total cost of implementing nationally determined contributions (NDCs) by more than half (~250 billion dollars/year in 2030), or alternatively facilitate the removal of 50 percent more emissions (~5 gigatonnes ofcarbon dioxide per year [GtCO2/year] in 2030), at no additional cost. We note, however, that careful framing in both the design and implementation of Article 6 is essential. A poorly designed and implemented framework could frustrate the achievement of Paris goals, whilea well-designed and implemented framework could further them. We conclude by identifying gaps in the research that would be useful to address before COP 25 in Chile. PublicationThe First International Research Conference on Carbon Pricing(World Bank, Washington, DC, 2019-02-15) Carbon Pricing Leadership Coalition; Burghaus, Kerstin; Koch, Nicolas; Bauer, Julian; Edenhofer, Ottmar; Atkinson, William; Bejerano, Stav; Hua, Victor; Lu, Jonathan; Moore, Samuel; Moradian, Jivahn; Nishtar, Hamza; Wu, Aileen; Evans, Stuart; Wu, Aaron; Schneider, Henrique; Golub, Alexander A.; Lubowski, Reben; Piris-Cabezas, Pedro; Peszko, Grzegorz; van der Mensbrugghe, Dominique; Dibley, Arjuna; Garcia-Miron, Rolando; Vivid Economics; Overseas Development Institute; Environmental Defense Fund; Leslie, Gabriela; Chestnoy, Sergey; Gershinkova, Dinara; Hamdi-Cherif, Meriem; Gutiérrez Torres, Daniela; Byrd, John W.; Cooperman, Elizabeth S.; Burian, Martin; Schnurr, Joachim; Kirkman, Grant A.; Shrestha, Janak; Singh, Tamiksha; Mangotra, Karan; Shen, Shiran Victoria; Sarasi Fernando, Sachintha; O'Broin, Eoin; Ewald, Jens; Naduad, Franck; Mata, Erika; Hennlock, Magnus; Girdaudet, Louis-Gaetan; Sterner, ThomanThis report provides the papers and proceedings of the first International Research Conference on Carbon Pricing held from February 14-15, 2019 in New Delhi, India. With the goal of strengthening the carbon pricing knowledge base and fostering an improved understanding of the evolving challenges to its successful application, the Carbon Pricing Leadership Coalition convened researchers, practitioners, and interested stakeholders for the CPLC Research Conference. PublicationGreening Construction: The Role of Carbon Pricing(International Finance Corporation, Washington, DC, 2019) Carbon Pricing Leadership Coalition; International Finance CorporationThis report examines how to design effective carbon pricing mechanisms (CPMs) for the construction industry. As the world’s largest consumer of raw materials, it accounts for a significant proportion of final energy demand and is responsible for 25 percent to 40 percent of global carbon-related emissions. Demographic trends underline the need for the construction industry to do more to address its contribution to climate change. The world’s population is predicted to reach nearly 10 billion by 2050, with the majority expected to live in urban areas. This will increase demand for buildings and infrastructure; some estimates suggest that 75 percent of the infrastructure needed by 2050 must still be built. PublicationGuide to Communicating Carbon Pricing(World Bank, Washington, DC, 2018-12) Partnership for Market Readiness; Carbon Pricing Leadership CoalitionStakeholder and public support are critical for an enduring and robust carbon pricing policy. How jurisdictions communicate their carbon pricing policy plays a key role in creating and maintaining that support. Drawing on case studies, research and best practice, the report provides guidance on designing and implementing effective carbon pricing communications strategies. PublicationConstruction Industry Value Chain: How Companies are Using Carbon Pricing to Address Climate Risk and Find New Opportunities(International Finance Corporation, Washington, DC, 2018) Carbon Pricing Leadership Coalition; International Finance CorporationThe global construction industry is the world’s largest consumer of raw materials, and constructed objects account for between 25 and 40 percent of total carbon emissions in the world. The industry is projected to grow at 4.2 percent annually between 2018 and 2023 in terms of market value, with expansion opportunities in residential, nonresidential, and infrastructure projects. In parallel, the Paris Agreement and its well-below-2 degrees Celsius target for global temperature increase has signaled an imperative toward decarbonization in the public and private sectors, including creating the impetus for a sustainable construction industry. With increasing populations, urbanization, and the fact that almost 75 percent of the infrastructure that will exist in 2050 has yet to be built, the construction industry is expected only to expand, thus providing a significant opportunity to improve its efficiency and transition toward a low-carbon future. This paper provides a framework for considering the construction value chain and explores existing attitudes and initiatives toward carbon pricing along it, with the objective of enabling companies to identify possible synergies and align their approaches to sustainability. Twelve of the Carbon Pricing Leadership Coalition’s (CPLC) partner companies representing sectors across the construction value chain, including aluminum, cement, glass, infrastructure, equipment manufacturing, construction services, and steel were interviewed to understand their motivations and experiences as they attempt to implement carbon pricing and transition toward low-carbon construction. Finally, the CPLC provides a forum for private companies to engage with governments to ensure the development of well-designed carbon pricing policies to help create a level playing field.