A virtual global carbon price is essential to drive rapid decarbonisation

Area of Science:

• Environmental science
• Climate change mitigation
• Infrastructure engineering

Background:

• Climate change presents a significant infrastructure challenge requiring a transition to renewable energy and zero-carbon buildings.
• Global transportation networks need transformation to meet net-zero goals.
• Engineering solutions are critical for delivering a Net Zero World.

Purpose of the Study:

• To propose a novel carbon pricing mechanism for infrastructure projects.
• To ensure infrastructure development aligns with climate change mitigation goals.
• To facilitate the global transition to a Net Zero World.

Main Methods:

• Development of a loss-and-damage-based carbon price.
• Incorporation of variable, national impact factors to adjust the carbon price.
• Application of carbon intensity weighting to enhance the price's effectiveness.

Main Results:

• A framework for a globally agreed virtual carbon price is proposed.
• The proposed carbon price allows for assessment of infrastructure projects' impact on carbon emissions and planetary health.
• National impact factors and carbon intensity weighting can modulate the carbon price for greater effectiveness.

Conclusions:

• A globally coordinated virtual carbon price is crucial for infrastructure development.
• The proposed loss-and-damage-based carbon price offers a scalable solution for climate change mitigation.
• Integrating national and intensity factors enhances the efficacy of carbon pricing for planetary health.