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Global Climate Action  

At the twenty-first session of the Conference of the Parties (COP 21) in Paris, it was agreed that mobilizing stronger and more ambitious climate action by all Parties and non-Party stakeholders is urgently required if the goals of the Paris Agreement are to be achieved.

In decision 1/CP.21, the commitments from all actors are recognized, including those launched through the Lima–Paris Action Agenda, as well as the urgent need to scale up the global response to climate change and support greater ambition from governments.

At COP 22 in Marrakech, a High-Level Event on Accelerating Climate Action was held to highlight outcomes from the Action Events throughout the conference and culminated with the launching of the Marrakech Partnership for Global Climate Action; a new framework to catalyse and support climate action.

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Use of carbon price

Business Leadership Criteria on Carbon Pricing

Set an internal carbon price, publicly advocate and communicate on progress

Lead Organisations

United Nations Global Compact, CDP

Objectives

The UN Global Compact seeks to mobilize business support towards the long-term objective of achievement a carbon price applied throughout the global economy. The two interlinked objectives for 2016-2017 are to:
• Contribute to mobilizing business around the world to take a leadership stance on carbon pricing with a view to expand quality corporate commitments.
• Encourage governments to develop policies that can lead to a meaningful price of carbon on the market.
Aligned with the below 2-degree Celsius pathway, the initiative asks companies to:
(1) Set an internal carbon price high enough to materially affect investment decisions to drive down greenhouse gas emissions;
(2) Publicly advocate the importance of carbon pricing through policy mechanisms that take into account country specific economies and policy contexts; and
(3) Communicate on progress over time on the two criteria above in public corporate reports.
To date, 69 companies with a total market capitalization of over USD 2.0 trillion across 20 sectors have committed to integrate carbon pricing into corporate long-term strategies and investment decisions.
For COP22, the initiative seeks to expand its signatory base to up to 100 companies that commit to the leadership criteria and to present findings from up to 10 local level carbon pricing dialogues.

During the occasion of the Paris Agreement Signing Ceremony at the United Nations on 22 April 2016, the UN Global Compact in consulting with UN partners has made a call to companies participating in Caring for Climate to take a leadership position and adopt the $100 price on carbon by 2020.
Based on work with approximately 70 companies that have already internalized a price on carbon, the UN Global Compact believes that $100 is the minimum price needed to spur innovation, unlock investment and shift market signals in line with the 1.5 to 2-degree Celsius pathway.
The broader vision and objective of the initiative is to reach a point where critical mass of companies around the world are aligning with the leadership criteria and applying an ambitious price on carbon.

Progress

We are currently in the planning stages of reaching out to our stakeholders to assess the progress to date since COP21. A survey is scheduled for early July.

Quantitative Impact

Finance

All companies that have aligned with the leadership criteria are asked to report annually on progress through the UN Global Compact Communication on Progress, CDP, and other relevant public reports.
We also conduct surveys and interviews throughout the year to assess impact. As mentioned in question 3, we plan to conduct a survey to all participants of the initiative.

Contact

UN Global Compact, Jayoung Park

park10@un.org, commit@cdp.net

https://www.unglobalcompact.org/docs/issues_doc/Environment/climate/Carbon_Pricing/C4C_CarbonPricing_2014.pdf

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