The Joint Task Force on Climate Action, Carbon Pricing, and Policy Spillovers has released a report titled “Working Together for Better Climate Action: Carbon Pricing, Policy Spillovers, and Global Climate Goals.” The task force was convened by the World Trade Organization (WTO) with participation from the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nations Conference on Trade and Development (UNCTAD), and the World Bank.
The report arrives at a crucial time as countries intensify efforts to address climate change. It notes that 75 carbon taxes and emission trading schemes are currently in effect worldwide, covering approximately 24% of global emissions. The document highlights the need to increase climate action to meet global emission reduction targets while supporting broader development goals.
The report outlines four key contributions: providing a common understanding of carbon pricing metrics to enhance transparency; examining the role of carbon pricing as a cost-effective tool that generates revenue; exploring how international organizations can coordinate policies to manage cross-border spillovers; and showing how such coordination can help scale up climate action by addressing transparency, implementation, and ambition gaps.
It also emphasizes future work by international organizations in filling knowledge gaps related to embedded carbon prices, border adjustment policy design, interoperability, cooperation enhancement approaches, and ensuring a just transition for all.
WTO Director-General Ngozi Okonjo-Iweala commented on trade-related climate policies leading to cross-border spillovers that could heighten trade tensions. She suggested that future work should focus on coordinating more ambitious carbon pricing policies.
IMF Managing Director Kristalina Georgieva stressed the urgency of cutting global emissions to achieve Paris Agreement goals. She emphasized that carbon pricing should be part of a comprehensive policy mix supported by public investment and sectoral policies.
OECD Secretary-General Mathias Cormann noted that achieving net zero requires aligning national efforts for global impact. He highlighted OECD’s Inclusive Forum on Carbon Mitigation Approaches which fosters shared understanding among its 59 members.
UNCTAD Secretary-General Rebeca Grynspan advocated for developing countries in crafting effective climate mitigation strategies while minimizing negative impacts from measures like Border Carbon Adjustments mechanisms.
World Bank Senior Managing Director Axel van Trotsenburg pointed out the importance of tailoring climate policies to individual country contexts through technical assistance and financing. He emphasized cooperation is essential as each country introduces its own climate initiatives.