Carbon pricing tools are playing a crucial role in achieving national and international climate goals, Jochen Flasbarth, State Secretary in the German Federal Ministry for Economic Cooperation and Development, said at an event titled "Fair Carbon Pricing: The Path to Global Carbon Pricing" held on the sidelines of the COP29, Report informs.
"Particularly low and middle-income countries see these tools as a promising means of mobilizing domestic resources. Well-designed carbon pricing not only generates significant revenue but also broadens the tax base and finances sustainable development," Flasbarth noted.
According to the German official, these tools can be used to support the transition to a low-carbon economy through investments in renewable energy sources and energy efficiency: "However, the success of carbon pricing depends on careful adaptation to country-specific contexts. Especially in developing and emerging economies, this process should not hinder other sustainable development goals. Therefore, carbon pricing policies should be adapted to local economic and institutional conditions. Key concerns are related to distribution effects, competitiveness, and emission leakage. This event is an important platform for sharing challenges and best practices regarding the implementation of carbon pricing tools in developing economies."