The role of carbon pricing in transforming pathways to reach net zero emissions
Insights from current experiences and potential application to food systems
This paper investigates the potential role and contribution of carbon pricing in transforming
emission pathways towards net zero GHG emissions. It reviews carbon pricing’s impacts,
overall and in the electricity sector in selected jurisdictions to date. The paper
also analyses the current and potential application of emissions pricing (e.g. emissions
trading schemes or carbon taxes) in food systems. The analysis finds that carbon pricing
could contribute to net zero pathways alongside other policies, yet price levels and
coverage to date have been too low to reduce emissions in line with the Paris Agreement’s
goals. Carbon pricing’s contribution to net zero pathways could be further strengthened,
including by incentivising demand-side shifts, sequencing policies and enhancing international
carbon pricing collaboration. Applying emissions pricing in food systems faces significant
short-term technical, methodological, and political barriers and could have just transition
implications but reducing emissions from food systems could also lead to many co-benefits.
Published on June 29, 2023
In series:OECD Environment Working Papersview more titles