Carbon Pricing is putting a price on carbon emissions, i.e., placing a fee on emitting and providing incentives for emitting less greenhouse gas emissions. This method is an effective way of reducing carbon emissions that governments utilize to achieve the primary goal. Carbon pricing mainly fulfills the goal of discouraging the use of carbon dioxide and emitting fossil fuels to protect the environment.
The concept of carbon pricing is gaining momentum worldwide; as of this year, we have experienced over 70 carbon pricing systems in existence, and several studies show that 80% of countries are interested in using international market mechanisms to achieve their goals of saving their environment from climate change.
Carbon pricing is effectively shifting responsibility for the payment of damages from the public to the producers of greenhouse gas emissions. So, now the companies responsible for the GHG emissions have been given two options: to either reduce their emissions or else pay for the harmful effects they cause to their environments.
The notion of carbon pricing is the most effective, flexible, and cost-friendly for tackling such emissions. It can be beneficial in several ways. It can help keep the global temperature at bay by facilitating the emission pathways. Secondly, carbon pricing can spur investment and innovation in creating a green environment, as this will help develop clean technology and channel finances toward green investments.
Moreover, it can assist in developing Sustainable Development Goals as carbon pricing can direct investments towards sustainable development projects. In addition to these benefits, carbon pricing can contribute to generating revenues that can be further utilized and recycled into the green economy. Governments can spend it on the research and development of green technology and manage the economic impacts of the transition to a low-carbon economy. At the same time, it can also help communities adapt to the effects of climate change.
Holistically, carbon pricing can create sufficient environmental, health, economic, and social co-benefits, such as green jobs and other public health benefits.
Bill Shireman is one of the catalysts dedicated to reducing climate change's effects on our environment. His social entrepreneurism consists of many projects that directly influence and benefit the sustainability of our environment. Shireman’s initiatives involve practices that help promote sustainable business procedures, recycling, forest, ocean, and climate protection.
Shireman is the promoter of a sustainable and healthy environment. He partnered with Van Jones and others to assist the campaign In This Together (InThisTogetherAmerica.org) for the same purpose.
His other initiatives and practices include the California Beverage Container Recycling Act. Shireman wrote, secured legislative sponsors, negotiated, and led the team that lobbied for, passed, and helped to implement this act.
He also created the framework to encourage recycling practices. Shireman teamed up with Coors Brewing Chairman and CEO William K. Coors to develop the framework called the “Closed Loop System.” This framework is used to recycle beverage cans, glass and plastic beverage containers, tires, motor oil, computers, and electronics.
Among his other sustainable environment practices involves the most prominent collaboration of Shireman with a friend in the domain of carbon pricing. Shireman collaborated with his friend George Schultz, former U.S. Secretary of State, and other Cabinet positions in the Nixon and Reagan administrations. Schultz and Shireman joined forces to advocate a federal “carbon fee and dividend” to reduce climate change, as described in a video and book of Shireman, Schultz wrote, “from forward and book jacket.”
Other than environmental activists like Bill Shireman, numerous business leaders and governments are now giving great importance and support to the carbon pricing phenomena and practices. Carbon pricing can be a great way to ensure that the source responsible for these emissions should pay the price rather than the public. The costs that the public pays for these greenhouse gas emissions are basically the indirect costs such as damage caused to their crops, health care costs due to heat waves and droughts, the destruction of property from the flooding, and the rise in sea level. Carbon pricing limits the organizations responsible for carbon emissions to pay the price and reduce the emission; both options are the right way to reduce carbon emissions instead of dictating them. Utilizing this concept and formulating strategies for implementing carbon pricing can promote sustainable environmental practices. But on the other hand, it can also stimulate clean and green technology and market innovation that fuels low-carbon drivers of economic growth.