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E-book State and Trends of Carbon Pricing 2020
2019 saw a significant number of countries, regions and cities declaring a “climate emergency”.10 The year closed at 1.1°C above pre-industrial averages, making it the second-warmest year observed—second only to the record set in 2016.11 Sea levels are rising at an alarming rate, and the devastating impacts of climate change are more visible than ever with wildfires ravaging Australia, Siberia and other Arctic regions.12 International coordination, political will, financial support, and swift policy responses are all necessary to meet the urgent call for climate action in a just and inclusive manner, and yet are so far inadequate. In this context, well-designed carbon pricing initiatives can play an essential role in delivering a resilient and low-carbon future. At the same time, social unrest has been spreading across the world, which led to the 25th. Conference of the Parties (COP 25) having to move from Santiago, Chile to Madrid, Spain only a month prior to its start. This unrest, driven primarily by an increasing cost of living, highlights the challenges countries will face in the necessary transition to a lowcarbon economy. The turbulent period for climate action and carbon pricing continued into 2020 with the COVID-19 pandemic. The ripple effect could be felt across the world as countries implemented quarantine measures.
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