According to the Net-Zero Asset Owner Alliance Discussion paper on governmental carbon pricing, today’s global carbon-pricing landscape can and should be transformed in a matter of years to pave the way for 1.5ºC-aligned emissions regulation.

In particular, all countries/regions should set a legally binding, long-term, carbon-pricing corridor in line with best available science for what is required to meet a 1.5°C trajectory.

Based on the analysis of the current carbon-pricing landscape, the discussion paper further recommends that the current carbon prices almost treble by 2030 and that complimentary policy mechanisms, such as scaling investments in renewable power systems, be implemented in parallel, so as to respect the imperative of a just transition.