At the 79th session of the United Nations General Assembly, the President of the European Commission, Ursula von der Leyen and the Prime Minister of Canada, Justin Trudeau, co-hosted a high-level event on carbon pricing and innovation titled ‘Innovation for a Sustainable Future: Working together on industrial growth and decarbonization’. The event was enriched by the participation of industry leaders, as well as concluding remarks from Ngozi Okonjo-Iweala, Director-General of the World Trade Organization and Selwin Charles Hart, Special Adviser to the Secretary-General on Climate Action.
Speakers agreed on the urgent need for all countries to accelerate climate action, ensure that people are not left behind and put in place a supportive regulatory framework for industry to achieve climate neutrality. Industry leaders from different sectors shared their experience of operating in a clear and stable carbon pricing framework, that together with public support, creates the right environment for long-term investments and innovation for them to reach net-zero. They emphasised the role of Emissions Trading Systems in this transition.
President von der Leyen confirmed her commitment to carbon pricing, highlighting that “It is almost 20 years since we first put a price on carbon with the so-called Emissions Trading System. Since then, we reduced emissions in the sectors it covers by 50% while our economy kept growing. Carbon pricing transforms pollution into innovation. It sends a very clear message to the business world: If you pollute, you pay. But if you go clean, it pays off. ” The President also offered the European Commission’s support for countries developing carbon markets.
As announced in her statement as candidate for a second Commission mandate at the European Parliament and in her Commission Political Guidelines, the President reiterated during the high-level event that she will put forward a new Clean Industrial Deal to complement the European Green Deal. Together they will enable the EU to reach its climate goals while improving the competitiveness of European industry. Building on the successes of carbon pricing, the President raised the idea of introducing a similar market for nature credits.
Prime Minister Trudeau highlighted Canada’s approach to pollution pricing, and the role of governments in creating the right incentives through policies like carbon pricing and investment tax credits for key technologies.
Ms Okonjo-Iweala emphasized the positive role of trade in decarbonisation and called for stronger collaboration between agencies and jurisdictions to set common standards in carbon pricing. Mr Hart thanked the European Union and Canada for their leadership in climate policies and called on all countries to submit ambitious NDCs in line with the Paris Agreement.
Opening speech by the President on carbon pricing (europa.eu)
