The End of Free Carbon Emissions: Why the Time is Right

As governments, private sector leaders and NGOs gathered for New York Climate Week this month, one theme dominated: the urgent need for immediate climate action.

Eron Bloomgarden is CEO and Founder of Emergent

Yet while discussions took place, millions of tonnes of planet-warming carbon emissions are released into our atmosphere daily, free of charge — adding up to billions of tonnes every year.

One simple action we could take is this: to call time on allowing polluters to treat our atmosphere as a free dumping ground. What we need is a new norm which sees a price put on all carbon emissions: Every Tonne. Every Time.

Putting a cost on carbon would drive a major shift in corporate climate policy, creating a powerful incentive for businesses to decarbonize their value chains.

And the unprecedented finance generated would be a game changer, funding solutions to systemic climate issues, like ending tropical deforestation – currently the third largest carbon emitter in the world, behind only the US and China.

Moreover, as climate change disproportionately impacts the world’s poorest communities and they are often least able to adapt, pricing carbon emissions would support a just transition to a low-carbon future.

Of course, the idea of putting a price on carbon is far from new. Economists and scientists have argued the case for years.

So why breathe life into this ‘old’ idea today?

Firstly, we know that it works. Programmes in places like California and the EU have demonstrated the effectiveness of carbon pricing. But these compliance systems only cover 20% of global emissions. That leaves the other 80%—approximately 40 billion tonnes—being emitted into the atmosphere for free each year.

Governments are introducing new regulatory systems. But where this can’t be done, or can’t be done fast enough, voluntary pricing of emissions must bridge the gap.

Secondly, the voluntary carbon market, much maligned in recent years, is now showing clear signs of maturity and integrity. Initiatives like the Integrity Council for the Voluntary Carbon Markets (ICVCM) and the Voluntary Carbon Markets Initiative (VCMI) are setting new standards for carbon credits and their responsible use by companies.

Studies now show that companies purchasing carbon credits are more likely to decarbonise their value chains than those that don’t. Further support came from the US Government, in April, with of a new set of principles for carbon credits’ use, prompting Michael Bloomberg to claim that "the end of greenwashing is in sight."

We have the tools available to support a new norm of voluntary pricing of all emissions. The question is how do we make it happen?

The first step is building a global movement to achieve consensus on this new norm. Thought leaders, civil society, policymakers, businesses, and consumers must come together to make the case for ending free emissions.

Crucially, we must ensure the debate goes beyond the usual climate forums. It needs to become a cause championed by CEOs, scientists, consumer groups, celebrities and social media influencers alike. An issue raised by voters every time our politicians hit the campaign trail, and one that guides their choices at the ballot box.

Once consensus is built, we need a concrete action plan, focusing on key drivers: social license to operate, investor pressure, consumer choice, talent attraction and retention, disclosure requirements, and government incentives.

There will be many others drivers too. We need to identify them all and used them to the fullest extent. And the action plan should have a target date - 2030 feel ambitious, but achievable.

But I can hear the questions already: ‘Is this just a pipe dream - a laudable yet unattainable goal?' ‘Can we afford it?’

Yes, it’s possible. And to me the real question is, ‘how can we afford not to?’

This month a new campaign, Reduce and Invest, launched encouraging corporate CEOs to take responsibility for all emissions in their value chains by investing in high integrity carbon credits, alongside decarbonization plans.

This is a great start, but many more of us need to join in and say ‘no more’ to free emissions. Then we need to come together, from a plan and make it happen.

Every Single Tonne. Every Time.