Energy Firms Push For Effective Carbon Pricing
Energy firms are pushing for effective carbon pricing with chief executives of six major energy companies writing to the United Nations to request help in setting up a scheme that works.
Chief executives from BP, Royal Dutch, Shell, Total, Statoil, Eni and the BG Group, approached Christiana Figueres, executive secretary of the UN Framework Convention on Climate Change, to ask if she would help them hold direct dialogue with the UN and willing governments.
Currently, the EU operates the world’s largest carbon trading scheme, which limits about 45% of total emissions. However the system is not producing significant results due, in part, to the low price setting for carbon, which does not currently factor in natural capital, such as the environmental costs associated with CO2 emissions.
The move by the energy companies comes ahead of the international COP21 summit in Paris, which starts in November, where most countries are expected to sign up to a new agreement on how to deal with global environmental challenges.
Accounting for natural capital as part of commodity prices is an important part of a functioning circular economy system and any level of international agreement on the price of carbon would be a positive step in that direction.
Lead image licensed under CC – credit Flickr user: Cristianhold