In this paper, the Net-Zero Asset Owner Alliance calls on policymakers to implement ambitious and reliable carbon prices, to fulfil the Paris Agreement commitments.
To ensure effective implementation of a carbon price policy instrument, the Alliance formulates a list of five design principles:
- Ensuring appropriate coverage and ambition,
- Delivering a just transition,
- Providing a predictable price signal,
- Minimising competitive distortions, and
- Promoting international cooperation.