BLOG – The climate challenge can only be met if there is a global price on carbon

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson.

Keeping us on track to reach net zero emissions will cost $35tr over the next decade -equivalent to a third of all of today’s assets held by fund managers, estimates The Economist.

Half of the emission reductions between now and 2050 would have to come from technologies not yet commercially available, according to Jason Bordoff, co-founding Dean of the Columbia Climate School.

New technologies were needed to decarbonise the heaviest polluting industries – petrochemicals, steel and cement, he said.

In petrochemicals, developed-world companies are working on new emissions-reduction technologies such as electric furnaces and green and blue hydrogen. We need sufficient funds to make these technologies scalable and available everywhere at the right cost.

The only way to raise the financing needed – and to prevent a bifurcated world of increasing emissions reductions in the developed world as business as usual continues in the developing world – is a global price on carbon.

But can a global price for carbon be made to work?

Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.