cover image: Carbon Pricing in the Power Sector: Role and design for transitioning toward net-zero carbon development

20.500.12592/hxw3zld

Carbon Pricing in the Power Sector: Role and design for transitioning toward net-zero carbon development

9 Sep 2024

The number of countries that have announced some type of commitment to net zero emissions has increased very rapidly in recent years, from five in 2018 to over 145 in 2023. Middle and low-income countries must therefore consider policies to both grow and decarbonize their power sectors. A growing number of them are considering carbon pricing instruments (CPIs). However, the path to implementing carbon pricing is fraught with challenges, including financing obstacles, the urgent need to boost supply, and social priorities different from those of more advanced economies with more carbon pricing experience. This report delves deep into the power sector value chain dynamics, demonstrating how well-designed carbon pricing instruments can be instrumental in helping countries reach their decarbonization goals. Focusing on how decisions are made in diverse power sector models in several developing countries, this report establishes that the CPI must be carefully positioned at the right regulation point in the power sector’s value chain—rather than merely adding a burden for the sector. Getting it right can influence everything from power generation options to investment decisions and customers’ behaviors.
carbon pricing electric utilities decarbonization power sector net zero energy::energy finance

Authors

World Bank, International Energy Agency (IEA), International Carbon Action Partnership (ICAP)

Citation
“ World Bank ; International Energy Agency (IEA) ; International Carbon Action Partnership (ICAP) . 2024 . Carbon Pricing in the Power Sector: Role and design for transitioning toward net-zero carbon development . © Washington, DC: World Bank . http://hdl.handle.net/10986/42091 License: CC BY-NC 3.0 IGO . ”
Collection(s)
Energy Study
DOI
https://doi.org/10.1596/42091
Pages
22
Published in
United States of America
Rights
CC BY-NC 3.0 IGO
Rights Holder
World Bank Group
Rights URI
https://creativecommons.org/licenses/by-nc/3.0/igo
UNIT
CCG-CFE
URI
https://hdl.handle.net/10986/42091
date disclosure
2024-09-09
region geographical
World

Files

Table of Contents