A framework to develop a global carbon benchmark price.

Putting a price on carbon, either through a domestic carbon pricing instrument or international carbon markets, will play an important role in driving innovation across sectors and facilitating an orderly transition towards low carbon by addressing market failures. While the current bottom-up development of carbon pricing and international carbon markets promotes innovation, the diversity of approaches reduces transparency between climate actions and increases the complexity of market integration. This in turn reduces visibility over existing and future carbon prices, as well as acts as a barrier to making finance flow to support climate actions.  

 In this context, the World Bank has been exploring an approach for the consolidation of carbon pricing information. A consolidated price would then be benchmarked as a “spread” against a global target price corridor that is consistent with the Paris Agreement. The objective of this webinar is to present the proposed consolidation methodology that the World Bank has developed and to discuss how it can be refined and leveraged to support multiple purposes.