On October 23, 2024, in Mexico City, the Regional Meeting on Carbon Pricing Instruments in the Americas was held, organized by the SiCEM project of the GIZ and the Ministry of Environment and Natural Resources of Mexico. At this event, Jimy Ferrer, from the Economic Commission for Latin America and the Caribbean (ECLAC), presented a presentation on the crucial role that international cooperation plays in the implementation of these instruments in the region.
During his speech, Ferrer highlighted that greenhouse gas (GHG) emissions constitute a negative externality, the social cost of which is not yet reflected in many economic decisions. In this sense, assigning a price to carbon is key to internalizing these costs and sending a signal that encourages the reduction of emissions. This type of instruments not only mitigates climate change, but also contributes to increasing tax revenues, which allows financing key investments in strategic sectors.
The ECLAC economist recalled that carbon pricing is one of the fundamental recommendations of the High Level Commission on Carbon Pricing, headed by Joseph Stiglitz and Nicholas Stern, who stated that a well-designed price is essential to reduce emissions. emissions efficiently.
Ferrer highlighted the importance of international cooperation in three key areas: the generation of knowledge, the strengthening of capacities and the linking of actors. Regarding knowledge, he mentioned that diagnoses and studies on carbon prices are allowing countries to move forward with specific proposals for their national realities.
International cooperation, according to Ferrer, has also been fundamental for strengthening capabilities in the region. He mentioned regional training initiatives and the creation of carbon price calculation guides and tools. These efforts have been promoted by international and cooperation organizations, which have worked closely with various countries to promote green fiscal strategies and to apply economic instruments, including carbon prices.
Finally, Ferrer highlighted the dialogue spaces promoted by ECLAC, which facilitate the exchange of experiences between the ministries of finance, environment and energy, as well as the financial sector. These collaborative spaces have allowed countries to learn from international experiences in applying carbon taxes, the Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM) of the European Union.
Jimy Ferrer’s intervention concluded with a call to deepen international cooperation, highlighting that success in the implementation of carbon pricing instruments in Latin America will depend largely on effective collaboration between different national and international actors, both public as private.
Add Comment