Publication: Greening Construction: The Role of Carbon Pricing
Loading...
Date
2019
ISSN
Published
2019
Editor(s)
Abstract
This 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.
Link to Data Set
Citation
“Carbon Pricing Leadership Coalition; International Finance Corporation. 2019. Greening Construction: The Role of Carbon Pricing. © International Finance Corporation. http://hdl.handle.net/10986/31765 License: CC BY-NC-ND 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Construction Industry Value Chain(International Finance Corporation, Washington, DC, 2018)The 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.Publication Distributional Impacts of Carbon Pricing on Households(World Bank, Washington, DC, 2020-05-01)Carbon 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.Publication Report of the High-Level Commission on Carbon Pricing and Competitiveness(World Bank, Washington, DC, 2019-09-21)The 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.Publication Simulating Carbon Markets(World Bank, Washington, DC, 2020-04)Carbon 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.Publication The First International Research Conference on Carbon Pricing(World Bank, Washington, DC, 2019-02-15)This 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.
Users also downloaded
Showing related downloaded files
Publication Services Unbound(Washington, DC: World Bank, 2024-12-09)Services are a new force for innovation, trade, and growth in East Asia and Pacific. The dramatic diffusion of digital technologies and partial policy reforms in services--from finance, communication, and transport to retail, health, and education--is transforming these economies. The result is higher productivity and changing jobs in the services sector, as well as in the manufacturing sectors that use these services. A region that has thrived through openness to trade and investment in manufacturing still maintains innovation-inhibiting barriers to entry and competition in key services sectors. 'Services Unbound: Digital Technologies and Policy Reform in East Asia and Pacific' makes the case for deeper domestic reforms and greater international cooperation to unleash a virtuous cycle of increased economic opportunity and enhanced human capacity that would power development in the region.Publication Fixing the Foundation(Washington, DC: World Bank, 2023-09-20)Countries in middle-income East Asia and the Pacific were already experiencing serious learning deficits prior to the COVID-19 pandemic. COVID-related school disruptions have only made things worse. Learning poverty -- defined as the percentage of 10-year-olds who cannot read and understand an age-appropriate text -- is as high as 90 percent in several countries. Several large Southeast Asian countries consistently perform well below expectations on adolescent learning assessments. This report examines key factors affecting student learning in the region, with emphasis on the central role of teachers and teaching quality. It also analyzes the role education technologies, which came into widespread use during the pandemic, and examines the political economy of education reform. The report presents recommendations on how countries can strengthen teaching to improve learning and, in doing so, can enhance productivity, growth, and future development in the region.Publication Business Ready 2024(Washington, DC: World Bank, 2024-10-03)Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.Publication Global Economic Prospects, June 2024(Washington, DC: World Bank, 2024-06-11)After several years of negative shocks, global growth is expected to hold steady in 2024 and then edge up in the next couple of years, in part aided by cautious monetary policy easing as inflation gradually declines. However, economic prospects are envisaged to remain tepid, especially in the most vulnerable countries. Risks to the outlook, while more balanced, are still tilted to the downside, including the possibility of escalating geopolitical tensions, further trade fragmentation, and higher-for-longer interest rates. Natural disasters related to climate change could also hinder activity. Subdued growth prospects across many emerging market and developing economies and continued risks underscore the need for decisive policy action at the global and national levels. Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing economies, on a semiannual basis (in January and June). Each edition includes analytical pieces on topical policy challenges faced by these economies.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.