Despite what you may find amid the myriads of comments in social media on climate change policies, carbon pricing has been working for a long time. Canada’s Ecofiscal Commission recently released a study revealing six places where carbon pollution pricing works.
Here are 6 examples where carbon pricing is working:
1. What: Since 2008 fuel use dropped by at least 7% per capita + Residential natural gas reduced by 7% per capita + Reduced diesel use by 3.3%
Where: British Columbia, Canada
How: Carbon tax
2. What: 20% less emissions from electricity generation + US$ 5 Billion avoided costs in healthcare + generated 40 000 jobs-hours.
Where: Northeastern United States (10 states, including New York & Massachusetts).
How: Cap-and-trade.
3. What: Since 1991, reduced carbon emissions by 25% in the first 10 years + Lowest emission per GDP and 2nd lowest per capita in the European Union + Encourage use of low-carbon fuel (4x biofuel use in 5 years)
Where: Sweden
How: the highest carbon tax in the world at €120 per tonne of CO2
4. What: UK emissions are at their lowest since 1890 (down 34% sine 2005) + Almost eliminated use of coal from electricity mix + potentially €3.6 Billion avoided costs annually in healthcare.
Where: United Kingdom
How: Carbon price “floor” in 2013 (carbon tax of 9£/ton CO2; now 18£/ton CO2) + joined the European Union’s emissions trading system in 2005
5. What: > 70% of buildings met 2020 targets by 2013 + a total of 23% reduced emissions in building sector (20% of Tokyo’s total carbon emissions)
Where: Tokyo
How: World’s 1st cape-and-trade focused on urban buildings (1,300 of its largest buildings pay a price on carbon)
6. What: Emission reduction of 8% since 2013 + Firms increased by 10% investments in low-carbon innovation
Where: European Union
How: Cap-and-trade system since 2005, the world's largest carbon market with 31 countries.