## Proposal for an International Carbon Price Floor Among Large Emitters

_Staff Climate Notes, June 18, 2021_

## Source details

**Canonical URL:** [Proposal for an International Carbon Price Floor Among Large Emitters](https://www.imf.org/en/publications/staff-climate-notes/issues/2021/06/15/proposal-for-an-international-carbon-price-floor-among-large-emitters-460468)

## Other formats

- [Markdown version](/en/publications/staff-climate-notes/issues/2021/06/15/proposal-for-an-international-carbon-price-floor-among-large-emitters-460468/index.md)
- [Structured JSON version](/en/publications/staff-climate-notes/issues/2021/06/15/proposal-for-an-international-carbon-price-floor-among-large-emitters-460468/index.json)
- [Bundle manifest](/en/publications/staff-climate-notes/issues/2021/06/15/proposal-for-an-international-carbon-price-floor-among-large-emitters-460468/bundle-manifest.json)

## Bibliographic details
- Authors: Ian W.H. Parry, Simon Black, James Roaf
- Published: June 18, 2021
- Series: Staff Climate Notes
- DOI: https://doi.org/10.5089/9781513583204.066

---

### Summary and Rationale
- Countries are increasingly committing to midcentury ‘net-zero’ emissions targets under the Paris Agreement.
- Limiting global warming to 1.5 to 2°C requires cutting emissions by a quarter to a half in this decade.
- Achieving sufficient progress to stabilize the climate requires ratcheting up near-term mitigation action, but doing so among 195 parties simultaneously is proving challenging.
- Reinforcing the Paris Agreement with an international carbon price floor (ICPF) could jump-start emissions reductions through substantive policy action, while circumventing emerging pressure for border carbon adjustments.
- The ICPF has two elements: (1) a small number of key large-emitting countries, and (2) the minimum carbon price each commits to implement.

### Design Considerations and Flexibility
- The arrangement can be pragmatically designed to accommodate equity considerations.
- The arrangement can accommodate emissions-equivalent alternatives to carbon pricing.
- The paper discusses the rationale for an ICPF, considers design issues, compares it with alternative global regimes, and quantifies its impacts.

### Subject Areas and Keywords
- Subject: Carbon tax, Climate change, Environment, Greenhouse gas emissions, Taxes
- Keywords: alternatives to carbon pricing, Carbon tax, Climate change, Climate change, design issues, emissions target, emissions-equivalent alternative, equity consideration, Global, Greenhouse gas emissions, IMF staff climate note, international carbon price floor, large emitters, mitigation, Paris Agreement

---

## Content in this bundle

- **clnea2021001**
  - [clnea2021001 (Markdown version)](/-/media/files/publications/staff-climate-notes/2021/english/clnea2021001.pdf.md){rel="alternate" type="text/markdown"}
  - [clnea2021001 (PDF)](/-/media/files/publications/staff-climate-notes/2021/english/clnea2021001.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/staff-climate-notes/issues/2021/06/15/proposal-for-an-international-carbon-price-floor-among-large-emitters-460468_