Global Carbon Pricing Generates Record $84bn in Revenue
Emmanuel Addeh
Global carbon pricing revenue in 2021 increased by almost 60 per cent from 2020 levels, to around $84 billion, a new World Bank report, has shown.
The World Bank document noted that this provides an important source of funds to help support a sustainable economic recovery, finance broader fiscal reforms, and invest in communities.
According to the World Bank’s annual “State and Trends of Carbon Pricing” report, there are 68 direct carbon pricing instruments operating today including 36 carbon taxes and 32 Emissions Trading Systems (ETSs).
Four new carbon pricing instruments, it said, were implemented since the release of the 2021 State and Trends of Carbon Pricing report: one in Uruguay and three in North America.
It explained that while carbon prices hit record highs in many jurisdictions, the report found that less than 4 per cent of global emissions are currently covered by a direct carbon price in the range needed by 2030 to meet the temperature goal of the Paris Agreement.
“The past year has seen some very positive signs, such as the significant increase in revenue that can be invested in communities and in supporting the low carbon transition.
“There is also good progress towards resolving cross-border issues related to carbon pricing and the adoption of new rules for international carbon markets that was agreed at COP26 in Glasgow, which helps set a clearer policy direction,” said Bernice Van Bronkhorst, Global Director for Climate Change at the World Bank.
“It is important now to build on this momentum and really ramp up both the coverage and the price levels to unlock the full potential of carbon pricing in supporting inclusive decarbonisation,” she added.
Key topics covered in the State and Trends of Carbon Pricing 2022 include cross-border approaches to carbon pricing, challenges and opportunities from rising energy prices, and new technologies and governance frameworks shaping carbon markets.
Report: Oil, Gas Investment Set to Rise by 20% in 2022 Despite Uncertainties
Emmanuel Addeh in Abuja
Global oil and gas investment is set to rise by 20 per cent this year, according to Rystad Energy, a research and business intelligence company providing data, tools, analytics and consultancy services in the energy industry across the globe.
Rystad noted that the growth will be driven by soaring oil prices and big money flowing into projects in West Africa Brazil, Guyana and Australia.
Earlier this year, Rystad had forecast 8 per cent growth for 2022, but, with Brent consistently topping $110 and West Texas International (WTI) flirting with the same levels, it said the world was witnessing the highest growth rate forecasts since 2008.
Globally, the biggest uptick in investment, it said, is coming from places like Guyana, where ExxonMobil has witnessed a string of major discoveries over the past seven years.
“This year alone, Exxon, with partners Hess and CNOOC, has made five oil discoveries in the Stabroek Block offshore Guyana, now updating resources to nearly 11 billion barrels, ”it said.
Meanwhile, oil-producing countries like Nigeria, which are already slowed down by the reduction investment in fossil fuels, may have more to contend as rich countries continue to withdraw investment abroad.
Members of the Group of Seven industrialised nations, known as G7, has pledged to end public financing for fossil fuel projects abroad by the end of the year to help combat global warming.
“We commit to end new direct public support for the international unabated fossil fuel energy sector by the end of 2022,” G7 energy and climate ministers said in a joint statement.
The term “unabated” refers to projects that do not employ techniques to offset some of the pollution caused by carbon dioxide emissions.
Ending subsidies for the international fossil fuel energy sector was already part of a series of commitments agreed to by around 20 countries at last year’s COP26 climate summit in Glasgow.
