A Global Incentive Scheme to Reduce Carbon Emissions
This paper proposes an objective way of estimating and allocating “differentiated” responsibilities for carbon emissions across countries. These responsibilities translate into specific obligations and incentives for future emission reductions and support for adaptation, mitigation, and development. The proposals in this paper should be seen as a starting point for an informed and productive debate. Under the Global Carbon Reduction Incentive, every country that emits more than the per capita global average pays into a global incentive fund. This annual payment will be calculated based on the “excess” emissions per capita, the country’s population, and a dollar amount called the Global Carbon Incentive. Countries below the global per capita average would receive a payout commensurate with their “under-emission.” The United States and China are the two biggest emitters and, assuming a Global Carbon Incentive of $10, they jointly would contribute more than $70 billion to the fund, from which nations such as India, Nigeria, Pakistan, Bangladesh, and Indonesia would be the major recipients. An important adjustment to the Global Carbon Reduction Incentive is to focus on consumption rather than production—a country should not avoid responsibility for the carbon it consumes by outsourcing production to another country. The proposal considers that countries that have used more of the collective carbon budget have benefited from the associated development and should pay for it. The proposal also considers methane emissions as well as crediting countries for their efforts toward preventing deforestation.
| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2024-04-25
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| Subjects: | AFFORDABLE AND CLEAN ENERGY, SDG 7, LIFE ON LAND, SDG 15, GREENHOUSE GAS EMISSIONS, GLOBAL WARMING, INTERNATIONAL FINANCE INSTITUTIONS, CARBON EMISSIONS, GLOBAL CARBON REDUCTION INCENTIVE, GLOBAL CARBON INCENTIVE, RESPONSIBLE CONSUMPTION AND PRODUCTION, SDG 12, |
| Online Access: | http://documents.worldbank.org/curated/en/099441104252417894/IDU10dc0cd371c9301457f1bdd0103f4facbffc6 https://hdl.handle.net/10986/41469 |
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| Summary: | This paper proposes an objective way
of estimating and allocating “differentiated”
responsibilities for carbon emissions across countries.
These responsibilities translate into specific obligations
and incentives for future emission reductions and support
for adaptation, mitigation, and development. The proposals
in this paper should be seen as a starting point for an
informed and productive debate. Under the Global Carbon
Reduction Incentive, every country that emits more than the
per capita global average pays into a global incentive fund.
This annual payment will be calculated based on the “excess”
emissions per capita, the country’s population, and a dollar
amount called the Global Carbon Incentive. Countries below
the global per capita average would receive a payout
commensurate with their “under-emission.” The United States
and China are the two biggest emitters and, assuming a
Global Carbon Incentive of $10, they jointly would
contribute more than $70 billion to the fund, from which
nations such as India, Nigeria, Pakistan, Bangladesh, and
Indonesia would be the major recipients. An important
adjustment to the Global Carbon Reduction Incentive is to
focus on consumption rather than production—a country should
not avoid responsibility for the carbon it consumes by
outsourcing production to another country. The proposal
considers that countries that have used more of the
collective carbon budget have benefited from the associated
development and should pay for it. The proposal also
considers methane emissions as well as crediting countries
for their efforts toward preventing deforestation. |
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