An adequate CO2 price brings about positive market stimuli
Myth
Carbon pricing can only be achieved at the global level.
Facts
Numerous examples, such as Sweden, UK or Switzerland show that CO2 taxes or minimum prices can be successfully introduced to trigger positive market dynamics.
The goal consists in triggering the potential for sustainable investment with efficient market signals by creating fair competition for clean technologies, to give them an impetus. The minimum price for CO2 helps to send out this signal and forces technologies which are damaging the climate and the environment to bear the consequential costs. Moreover, it should give investors and industry much-demanded predictability and planning security. Examples such as Great Britain show that a CO2 minimum price can actually contribute to significant market shifts. After the introduction of the CO2 minimum price, the share of coal in British power production dropped from over 40% to under 10% in only five years.
