What Does It Mean to Put a Price on Carbon?

STORY HIGHLIGHTS

• Carbon pricing is gaining attention as a way to address climate change. About 40 countries and more than 20 cities, states and provinces use carbon pricing mechanisms such as emissions trading systems and carbon taxes or are preparing to implement them.
  
• A price on carbon helps shift the burden for damage from greenhouse gas emissions back to those who are responsible for it and who can reduce emissions.
  
• The private sector has been increasingly outspoken in its support for consistent carbon pricing. Many companies already operate in countries with carbon pricing and use shadow carbon pricing in their planning and investments.

Leaders: We Must Address Climate Change Threat United States President Barack Obama talked in a recent interview about a price on carbon as the way to begin solving the challenge of climate change. New York Times columnist Tom Friedman had asked: What is the one thing you would still like to see us do to address climate change? Obama replied: “for us to be able to price the cost of carbon emissions.” See full Press Release: http://www.worldbank.org/en/news/feature/2014/06/11/what-does-it-mean-to-put-a-price-on-carbon