Ian Adlington, CEO of New Carbon Economics, agrees with OECD Secretary-General, Angel Gurria’s comment that “unlike the financial crisis, we do not have a climate bailout option up our sleeves”.
Ian Adlington is leading a movement in the carbon economy that promotes privately sponsored carbon markets which have a far greater impact on emissions reduction than any government sponsored schemes. This thinking is supported in a recent OECD report “Climate and Carbon. Aligning Prices and Policies” that makes it clear that countries should make carbon pricing the cornerstone of climate policy. The report goes on to state that carbon markets are 94% cheaper than renewable support. “It is true that all countries need a coherent approach to carbon pricing,” – points Ian Adlington. “To make a phasing out of fossil fuel emissions, price signals need to be consistent with all consumers, producers, and the investment community.”
The OECD findings conclude that to reduce one metric tonne of carbon dioxide in the power industry by utilizing carbon markets is 10 euros on average, compare this with 169 euros for feed-in tariffs. This in itself is a proof that the power of independent carbon markets that are financed by world financial markets has a significant economic upside over that of any government intervention, especially that of taxation.
New Carbon Economics has consistently argued these very points. We are delighted that the OECD report confirms our thinking. As stated by Angel Gurria, “whatever policy mix we put into place, it has to lead to a complete elimination of emissions to the atmosphere from fossil fuels in the second half of the century.”
The change in the post-carbon world will undoubtedly bring new economic opportunities. However, the report goes on to say that this will not be costless. Governments need to be open and frank about this course. Limiting the global average temperature to less than 2 degrees Celsius will require substantial and expensive mitigation in terms of investments. “This is all achievable,” says Ian Adlington, “and the key is the development via international cooperation of carbon markets that allow this orderly transition to take place.”
“Our planet Earth’s atmosphere is expected to tolerate about one trillion metric tones of CO2 in total. In the last 250 years we have emitted half of that amount. It is expected that in the next 25 years, at the current trends, we will emit the other half, “– says Ian Adlington. There is no time for governments to implement stop-go policies. The solution needs to include new carbon economic thinking, which propagates these carbon markets as the foundation for substantial carbon reduction, the fundamental economic thinking which accounts for balancing our global economy with our planetary needs.
- Carbon Markets Cut Emissions 17x Cheaper Than Subsidies (cleantechnica.com)
- Carbon Markets Cut Emissions 17 Times Cheaper Than Subsidies (theenergycollective.com)
- Carbon Markets 16 Times Cheaper Than Renewable Aid, OECD Says (bloomberg.com)
- UN talks on new carbon markets break down (trust.org)
- Fossil fuel emissions must end this century, warns OECD (treehugger.com)
- U.N. talks on new carbon markets break down (reuters.com)
- OECD says carbon markets cut emissions 17x cheaper than subsidies (reneweconomy.com.au)
- OECD gives support to carbon pricing (skynews.com.au)
- Indonesia to Launch Voluntary Carbon Market (thejakartaglobe.com)