OECD report calls for credible and consistent carbon pricing to tackle climate change,

Releasing the report Climate and carbon: Aligning prices and policies during a Lecture organised jointly with the London School of Economics, OECD Secretary-General Angel Gurría said that a transformation of the global energy system is needed if countries hope to limit climate change to a 2ºC temperature increase from pre-industrial levels, as agreed by the global community. He called for a coherent approach to carbon pricing, to ensure that price signals sent to consumers, producers and investors alike are consistent and facilitate the gradual phase-out of fossil fuel emissions. He also questioned how much impact existing climate policies can have when countries around the world continue to subsidise the exploration, production and use of fossil fuels. Read Mr. Gurría’s speech on The climate challenge: achieving zero emissions.

“Whatever policy mix we put in place, it has to lead to the complete elimination of emissions to the atmosphere from fossil fuels in the second half of the century,” Mr Gurría said. “We don’t need to see zero net emissions tomorrow, but we will need to be on the pathway.”

The report says governments need to ensure that carbon pricing is sufficient to achieve climate goals and that other policies are well-aligned with these goals. With international negotiations getting under way for a new climate agreement in 2015, every government needs to review its policy settings and rigorously assess if their overall impact helps climate action or hinders it

Click here to go to full press release on OECD site.