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Carbon Pricing Needs To Reflect The True Cost Of Climate Impacts

Carbon pricing needs to reflect the true cost of climate impacts

In a new position paper on carbon pricing, advocates additional measures to accelerate the transition to a low-carbon economy. 

We welcome the high priority the European Commission and the European Parliament give to addressing the existential threats caused by climate change. However, the lack of “true pricing” of climate impacts, common standards for measuring CO2 and other greenhouse gas (GHG) emissions (CO2e), and effective compensation schemes form major impediments for a timely transition to a carbon neutral, fair and truly sustainable economy. therefore calls for consistent and fair policy measures, standards, and rules for measuring GHG emissions, using the GHG Protocol and Science-Based-Targets as a reference. Avoiding GHG emissions should be the first priority, followed by emission reduction before compensation. We further advocate minimum standards for calculating and compensating these emissions, including a timeframe to measure impact and promote the implementation of renewable energy projects such as REDD+. 

To this end, our Federation strongly advocates the following rules and measures:

  • Extension of the EU ETS to all products facing international competition
  • Cancellation of free CO2 credits or allowances for specific industries or product groups
  • Rapid implementation of a Carbon Border Adjustment Mechanism (CBAM) with expansion to all sectors involved
  • EU-wide implementation of harmonised eco-modulated Extended Producer Responsibility (EPR) schemes taking into account GHG emissions
  • Additional taxation of GHG emissions at the national level until the EU ETS carbon price has reached its True Cost value.

For more specific recommendations please read our full position paper HERE.

jcr03 - Account managed by Executive Director

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