Working Paper - Implementing Effective Carbon Pricing Overview CONTENTS

INTERNATIONAL COOPERATION 13 A better way to overcome competitiveness 13 International cooperation on carbon pricing and subsidy concerns reform, in particular between countries of the G20, and with the support of the World Bank, the Organisation for Economic How to foster greater international cooperation 14 Co-operation and Development (OECD) and the International on carbon pricing Monetary Fund. [...] • Following the release this year of the initial results of the voluntary fossil fuel subsidy peer review processes in G20 and APEC countries (with reviews of the United States, China and Peru), the G20 and APEC could draw preliminary lessons learned and encourage additional countries to engage in peer reviews and widen the subsidies covered in the review. [...] The aim of this work is to enlarge the number of countries and businesses adopting and supporting carbon pricing prior to the UN Climate Change Conference (COP21) in Paris and beyond. [...] Commit to annual reporting on action and progress: A coordinated group of international institutions, such as the OECD, the IEA and the IMF, could work together to promote transparency and create clear and aligned expectations among businesses and investors on the level and direction of subsidy phase-out and carbon pricing in the G20 and other countries. [...] (Fossil fuel subsidy phase-out 2 was excluded due to uncertainty around the estimates.) The potential global annual emissions savings from this level of carbon pricing in 2030 are estimated to be in the order of 2.8–5.6 Gt of CO e.109 In the light of this analysis, the Global Commission on 2 the Economy and Climate recommends that all developed and emerging economies, and others where possible, co.