Tuesday, 26 November 2024.
Working with over 100 countries, the OECD is a global policy forum that promotes policies to preserve individual liberty and improve the economic and social well-being of people around the world.
According to a recent report from OECD, “reduced energy excise tax rates in many countries in response to the recent energy crisis led to lower implicit carbon prices in 2023”.
On the other hand, the same report indicates that due to the entry into operation of around 15 new emissions trading schemes over the next five years, a greater part of emissions will be priced.
“Ceteris paribus”, indicates a Latin expression meaning "all other things being equal”.
Why do we say that? Among various reasons, we highlight the following 4.
(1) price has an inverse correlation with the quantity of money available.
(2) inflation erodes prices.
(3) financial resources are limited, like the former United States Secretary of State John Kerry alerted in the last Davos 2024 meeting.
(4) COP 29 in Azerbaijan ended committing only a fraction of the climate finance needed by developing nations.
OECD report adds that some countries “are also considering cross-border effects and new policies, such as border carbon adjustments.” For exemple, CBAM and the debates at the World Trade Organization 13th Ministerial Conference (MC13) in Abu Dhabi.
In this regard, let us remember that we live in times when the World is experiencing a crescendo of geopolitical tensions for various reasons.
Regardless of geopolitics, the CO2 concentration graph keeps showing the same continuous increasing trend in the atmosphere since the Industrial revolution, an alert always present in Al Gore’s presentations.
And Al Gore, United States former vice-president, did it again a few days ago, during COP 29 in Azerbaijan:
“The thin blue shell that surrounds our planet … Its blue because that is where the oxygen is and that is also where all of the global warming pollution is. And it is so thin that if you could drive a car straight up in the air, autobahn speed, you should get to the top to that blue line in about 5 to 7 minutes. And that is where we are using as an open sewer for all of the global warming pollution that we are putting into it at a rate of 175 million tons every single day … on average the molecule stays there about 100 years, so it builds up … the largest source of all that pollution, of course, is the burning of fossil fuels, 80% … ” said Al Gore. Here you can watch and listen by yourself, a YouTube video by @WeDontHaveTime
Click at the image below to access OCDE’s press release about the “Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down” report, which is available in English and French.
Last but not least, the Latin expression quoted above - “Ceteris paribus” - is also used to facilitate the explanation of concepts, particularly in Economics and Chemistry, two sciences - one social and one natural - that converge when we refer to Carbon Credit Markets, right?
So, how will carbon be priced and balanced in the coming years? Naturally like Chemistry and gold, or socially like Economics and life?
