The Call to Action for Paris-Aligned Carbon Markets sets out an ambitious agenda to strengthen the role of carbon pricing in achieving the Paris Agreement goals while also mobilizing finance for sustainable development. It highlights that although emissions trading systems generated around $56 billion in revenue in 2021, less than 4% of global emissions are currently covered by a carbon price consistent with the levels needed to meet the 1.5°C target.
A central objective of the Call is to accelerate the expansion and deepening of domestic carbon pricing instruments, including carbon taxes, emissions trading systems, and other market-based mechanisms. Building on existing national and regional experiences, the initiative aims to significantly scale up coverage so that at least 60% of global emissions are priced, aligning with the ambition of the Global Carbon Pricing Challenge.
The document emphasizes that expanding carbon markets should go hand in hand with strengthening their environmental integrity and effectiveness. As these systems scale up, major emitting jurisdictions are encouraged, where feasible, to dedicate a share of carbon pricing revenues to international climate finance. This would help address both mitigation needs and broader sustainable development challenges, particularly in developing countries.
Overall, the Call to Action underscores carbon markets as a key tool for bridging ambition and implementation under the Paris Agreement.