Putting a price on CO₂ is powerful because of what it can achieve. It makes clean technologies more competitive, discourages the use of oil, coal, and gas, and generates revenues that can support low-income households. This last point is especially important to ensure a just transition to a low-carbon future.
The Carbon Pricing Incidence Calculator (CPIC) was created with the objective in mind to facilitate socially responsible carbon pricing policies. The tool provides clear insights into how carbon pricing affects different societal groups (including for example differentiated by income, appliance or vehicle ownership, gender or region) across 88 countries. It looks at different pricing design schemes, considers a range of economic sectors, and explores various ways to redistribute revenues in an equitable way.
With practical implementation through stakeholder workshops already underway, inter alia in Uganda, Mongolia and Mexico, CPIC is proving to be an effective way to understand and evaluate how carbon pricing policies can reduce emissions while protecting vulnerable communities.
To know more about CPIC, explore it here
