{ "title": "Joint Report Explores Scope for Coordinated Approaches on Climate Action, Carbon Pricing, and Policy Spillovers", "publication": "IMF News, October 23, 2024", "sourceUrl": "https://www.imf.org/en/news/articles/2024/10/23/pr24393-joint-report-explores-scope-coord-appro-clim-action-carbon-pricing-policy-spillovers", "canonical": "https://www.imf.org/en/news/articles/2024/10/23/pr24393-joint-report-explores-scope-coord-appro-clim-action-carbon-pricing-policy-spillovers", "overlayPath": "/en/news/articles/2024/10/23/pr24393-joint-report-explores-scope-coord-appro-clim-action-carbon-pricing-policy-spillovers/index.md", "summary": "Washington, DC – October 23, 2024: Five international organizations today released a landmark report that outlines pathways for coordinated approaches on climate action, carbon pricing, and the cross-border effects of climate change mitigation policies with a view to achieving global climate goals.", "publishDate": "2024-10-23", "sections": [ { "heading": "Overview and purpose", "content": "- Five international organizations released a joint report titled \"Working Together for Better Climate Action: Carbon Pricing, Policy Spillovers, and Global Climate Goals\" on October 23, 2024.\n- Convening and contributors:\n - Convened by the World Trade Organization and joined by the International Monetary Fund, the Organization for Economic Co-operation and Development, United Nations Trade and Development (UNCTAD), and the World Bank.\n- Objective: outline pathways for coordinated approaches on climate action, carbon pricing, and cross-border effects of climate change mitigation policies to help achieve global climate goals." }, { "heading": "Key factual findings and metrics", "content": "- Carbon pricing instruments in effect:\n - \"75 carbon taxes and emission trading schemes currently in effect worldwide, covering approximately 24 per cent of global emissions.\"\n- Trade-related climate measures:\n - \"Over 5,500 measures linked to climate objectives notified to the WTO from 2009-2022.\"\n- International collaboration examples:\n - \"The OECD's Inclusive Forum on Carbon Mitigation Approaches, now with 59 members.\"" }, { "heading": "Major contributions of the report (enumerated)", "content": "- Provides a common understanding of carbon pricing metrics to improve transparency on how countries are shifting incentives for decarbonization.\n- Examines the composition of climate change mitigation policies, emphasizing the important role of carbon pricing as a cost-effective instrument that also raises revenues.\n- Outlines how international organizations can support the coordination of policies to foster positive and limit negative cross-border spillovers from climate change mitigation policies.\n- Analyses the advantages and disadvantages of carbon border adjustment policies, including their impact on developing countries.\n- Shows how coordination can help scale up climate action by closing the transparency, implementation, and ambition gaps." }, { "heading": "Identified knowledge gaps and research needs", "content": "- Need for more granular and better data on embedded carbon prices and embedded emissions.\n- Need for further work on the design of border adjustment policies and their interoperability.\n- Need for research on other approaches to enhance cooperation to increase ambition and ensure a just transition for all." }, { "heading": "Policy analysis and recommended focus areas (from institutional statements)", "content": "- IMF Managing Director Kristalina Georgieva:\n - Carbon pricing and equivalent policies are important to scale up climate action.\n - \"Global emissions need to be cut urgently to put the world on track to achieve the Paris goals and global ambition needs to be doubled to quadrupled.\"\n - Carbon pricing should be part of a well-designed policy mix, complemented with public investment support and sectoral policies.\n - International coordination on mitigation action could unlock progress.\n- WTO Director-General Ngozi Okonjo-Iweala:\n - Trade-related climate policies generate cross-border spillovers that can increase trade tensions and retaliatory trade actions.\n - Future work should focus on concrete ways to coordinate more ambitious carbon pricing policies and may require a framework for interoperability between carbon pricing and other climate mitigation policies.\n- OECD Secretary-General Mathias Cormann:\n - Aligning differing national approaches is needed for a truly global impact.\n - More coherent and better-coordinated global mitigation policies can help prevent carbon leakage or trade distortions while maximizing opportunities for innovation, cost savings, and shared benefits.\n- UNCTAD Secretary-General Rebeca Grynspan:\n - Emphasizes evidence-based climate-related measures, including Border Carbon Adjustments mechanisms (BCAs), that minimize negative spillovers on developing countries and other sustainable development goals.\n - Highlights constraints for less advanced economies: limited productive capacity, infrastructure for monitoring, verification, reporting, and fiscal space.\n - Commits to support developing countries to decarbonize and diversify economies, seize environmental-related export opportunities, and reduce compliance and trade costs associated with transitions.\n- World Bank Senior Managing Director Axel van Trotsenburg:\n - Technical assistance and financing can tailor climate policies to country context, capacities, political constraints, and development priorities.\n - Carbon pricing provides incentives for the private sector and public revenues to support development and help vulnerable populations manage the green energy transition.\n - Emphasizes the growing need for cooperation and coordination as countries introduce their own climate policies.\n - The report offers concrete ideas to design climate policies that benefit lower-income economies and help them accelerate development, create jobs, and participate in global value chains." }, { "heading": "Implications for policy coordination and next steps", "content": "- Coordination goals:\n - Foster positive cross-border spillovers and limit negative spillovers from mitigation policies.\n - Close transparency, implementation, and ambition gaps to scale up climate action.\n- Practical priorities identified:\n - Develop interoperable designs for border adjustment policies and other coordination mechanisms.\n - Improve data on embedded carbon prices and embedded emissions to inform policy design and transparency.\n - Support capacity building and technical assistance for developing countries to ensure a just transition and minimize adverse spillovers.\n- Emphasis on balancing climate ambition with development objectives, fiscal considerations, and equitable treatment of less advanced economies.\n\nIMF Communications Department, October 23, 2024.\n\n---\n\n\n References\n\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2024/10/23/pr24393-joint-report-explores-scope-coord-appro-clim-action-carbon-pricing-policy-spillovers" } ], "bullets": [ "[Markdown version](/en/news/articles/2024/10/23/pr24393-joint-report-explores-scope-coord-appro-clim-action-carbon-pricing-policy-spillovers/index.md)", "[Structured JSON version](/en/news/articles/2024/10/23/pr24393-joint-report-explores-scope-coord-appro-clim-action-carbon-pricing-policy-spillovers/index.json)", "[Bundle manifest](/en/news/articles/2024/10/23/pr24393-joint-report-explores-scope-coord-appro-clim-action-carbon-pricing-policy-spillovers/bundle-manifest.json)", "Published: October 23, 2024", "Five international organizations released a joint report titled \"Working Together for Better Climate Action: Carbon Pricing, Policy Spillovers, and Global Climate Goals\" on October 23, 2024.", "Convening and contributors:", "Objective: outline pathways for coordinated approaches on climate action, carbon pricing, and cross-border effects of climate change mitigation policies to help achieve global climate goals.", "Carbon pricing instruments in effect:", "Trade-related climate measures:", "International collaboration examples:", "Provides a common understanding of carbon pricing metrics to improve transparency on how countries are shifting incentives for decarbonization.", "Examines the composition of climate change mitigation policies, emphasizing the important role of carbon pricing as a cost-effective instrument that also raises revenues.", "Outlines how international organizations can support the coordination of policies to foster positive and limit negative cross-border spillovers from climate change mitigation policies.", "Analyses the advantages and disadvantages of carbon border adjustment policies, including their impact on developing countries.", "Shows how coordination can help scale up climate action by closing the transparency, implementation, and ambition gaps.", "Need for more granular and better data on embedded carbon prices and embedded emissions.", "Need for further work on the design of border adjustment policies and their interoperability.", "Need for research on other approaches to enhance cooperation to increase ambition and ensure a just transition for all.", "IMF Managing Director Kristalina Georgieva:", "WTO Director-General Ngozi Okonjo-Iweala:", "OECD Secretary-General Mathias Cormann:", "UNCTAD Secretary-General Rebeca Grynspan:", "World Bank Senior Managing Director Axel van Trotsenburg:", "Coordination goals:", "Practical priorities identified:", "Emphasis on balancing climate ambition with development objectives, fiscal considerations, and equitable treatment of less advanced economies.", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2024/10/23/pr24393-joint-report-explores-scope-coord-appro-clim-action-carbon-pricing-policy-spillovers/index.md", "json": "/en/news/articles/2024/10/23/pr24393-joint-report-explores-scope-coord-appro-clim-action-carbon-pricing-policy-spillovers/index.json", "bundleManifest": "/en/news/articles/2024/10/23/pr24393-joint-report-explores-scope-coord-appro-clim-action-carbon-pricing-policy-spillovers/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T03:23:04.121Z" }