New Citi GPS Report: ‘Solving the Emissions Crisis Before Time Runs Out’; Examines Potential for Climate Action Development Bank, Voluntary Climate Clubs, and Market Based Mechanisms
Human-induced greenhouse gas emissions are still increasing. At current rates we have just 14 years before global temperatures rise beyond 1.5degrees C. “COP26 provides an opportunity for governments to come together and try to solve the emissions and climate crisis,” says
“Market based mechanisms such as a direct carbon tax, emissions trading systems and carbon credits can be used to reduce emissions. However, this fragmented approach is clearly inefficient, and evidence tells us that it is currently ineffective in reducing emissions at a global level,” adds Channell. “Since climate change is a global problem, a global solution will be needed to solve this crisis.”
This report analyses a range of different mechanisms that could potentially be scaled up at a global level, including ‘Article 6’ as defined in the
These mechanisms are not mutually exclusive, and can be applied in conjunction with one another. “Given the difficulty and complexity of negotiating a global mechanism amongst all nations however, we believe that setting up a voluntary climate club is likely to be the most feasible option,” says
“Getting the right global mechanism is however not the only challenge – we also need to find a way to move finance from developed to emerging markets, allowing the latter to decarbonise without impacting growth and inadvertently consigning millions to poverty for longer than might otherwise be the case,” says
“This is the decade of action, and time is rapidly running out – the world needs to come together to tackle this global challenge, and
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