Five international organizations have released a comprehensive report aimed at promoting coordinated approaches to climate action, carbon pricing, and addressing policy spillovers. The Joint Task Force on Climate Action, Carbon Pricing, and Policy Spillovers presented the report titled "Working Together for Better Climate Action: Carbon Pricing, Policy Spillovers, and Global Climate Goals" on October 23 in Washington, DC. This task force was convened by the World Trade Organization (WTO) and included contributions from the International Monetary Fund (IMF), the Organization for Economic Co-operation and Development (OECD), United Nations Trade and Development (UNCTAD), and the World Bank.
The report arrives amid increasing global efforts to mitigate climate change through various policies such as carbon taxes and emission trading schemes. These policies currently cover about 24 percent of global emissions. It highlights that more aggressive climate action is needed to meet emission reduction targets while supporting broader development objectives.
IMF Managing Director Kristalina Georgieva emphasized the importance of carbon pricing as part of a comprehensive policy mix to achieve global climate goals. She stated: "This joint report of the five institutions highlights why carbon pricing and equivalent policies are important to scale up climate action."
WTO Director-General Ngozi Okonjo-Iweala pointed out the rise in trade-related climate policies which could lead to increased trade tensions due to cross-border spillovers. She noted: "Future work by international organizations should focus on concrete ways to come to the coordination of more ambitious carbon pricing policies."
OECD Secretary-General Mathias Cormann called for aligning national efforts towards net-zero emissions for a global impact. He said: "More coherent and better-coordinated global mitigation policies can help prevent negative cross-border impacts such as carbon leakage or trade distortions."
UNCTAD Secretary-General Rebeca Grynspan highlighted the need for evidence-based climate measures that minimize negative impacts on developing countries. She remarked: "To ensure a just and green transition, UNCTAD encourages and supports developing countries in crafting the right policy mix."
World Bank's Senior Managing Director Axel van Trotsenburg stressed tailoring climate policies to each country's context while emphasizing cooperation among nations. He stated: "We think carbon pricing can play a central role in these policies because it provides the right incentive for the private sector."
The report also calls for filling knowledge gaps with more detailed data on embedded carbon prices and emissions, designing border adjustment policies, enhancing cooperation, increasing ambition, and ensuring a just transition globally.