Amid repeated calls for action to address climate change, a research paper of former Department of Information and Communications Technology (DICT) undersecretary Anna Mae Yu Lamentillo on carbon pricing has landed in the prestigious London School of Economics (LSE) International Development Review.
But what exactly is carbon pricing?
According to the United Nations Framework Convention on Climate Change (UNFCCC), carbon pricing is a form of curbing greenhouse gas emissions (GHG) by placing a fee on emitting and/or offering an incentive for emitting less.
It works by capturing the external costs of emitting carbon—the public pays, such as loss of property due to rising sea levels, the damage to crops caused by changing rainfall patterns, or the health care costs associated with heat waves and droughts.
Simply put, the World Bank stated that carbon pricing shifts the burden for the damage from GHG emissions back to those who are responsible for it and who can avoid it.
And in her research paper titled "A Price Tag on Pollution: The Case on Carbon Pricing," Lamentillo shed light on the imperative role of carbon pricing in combating climate change and facilitating a sustainable future.
The paper details various carbon pricing mechanisms, including emissions trading systems (ETS) and carbon taxes, and their successful implementation in regions like the European Union and countries like South Korea and Singapore.
It also explores the International Monetary Fund's proposal for an International Carbon Price Floor (ICPF), aimed at harmonizing carbon pricing globally and mitigating competitive disadvantages among nations.
Lamentillo's findings indicate that carbon pricing not only serves as an effective tool for reducing emissions but also generates significant revenues that can be reinvested in climate adaptation and mitigation efforts.
The research provides a call to action for policymakers worldwide to adopt and enhance carbon pricing strategies to meet their Nationally Determined Contributions (NDCs) under the Paris Agreement.
Timely
Lamentillo’s paper was published in the wake of the United Nations Climate Change Conference (COP 28) in Dubai, UAE, where the "UAE Consensus" was adopted and signaled the start of the end for the fossil fuel era.
The research provides a call to action for policymakers worldwide to adopt and enhance carbon pricing strategies to meet their Nationally Determined Contributions (NDCs) under the Paris Agreement
Why is it important?
The LSE International Development Review is an academic journal based at the London School of Economics and Political Science, dedicated to publishing cutting-edge research that contributes to understanding and solving global development challenges.
Lamentillo’s study that was published in it underscored the urgent need for global actions as she emphasized that without the implementation of carbon pricing, the goal to limit global warming to 1.5 degrees Celsius above pre-industrial levels remains a distant dream.
Drawing on the latest IPCC (Intergovernmental Panel on Climate Change) reports and comprehensive data analyses, Lamentillo argued that the current trajectory could lead to a 3.2 degrees Celsius increase by 2100, with catastrophic implications for biodiversity, food security, and human livelihood.
The research stresses that carbon pricing, by making polluters pay for the greenhouse gases they emit, can significantly deter fossil fuel use and accelerate the transition to clean energy.
Lamentillo's findings indicate that carbon pricing not only serves as an effective tool for reducing emissions but also generates significant revenues that can be reinvested in climate adaptation and mitigation efforts.
Her landmark study is also considered as a valuable contribution to the ongoing discourse on climate policy and a testament to the LSE International Development Review's commitment to fostering insightful research that addresses the most pressing global challenges.