Carbon "pricing" mechanisms

Shell supports the establishment of government-led carbon “pricing” mechanisms that deliver a meaningful cost on CO2 emissions, necessary to create a shift to a lower-carbon power and fuel options.

A carbon “pricing” mechanism is an effective way to stimulate investment in the development of low-carbon technologies and to create new energy choices. Government carbon “pricing” policies are designed to change the cost of goods and services, to favour those that result in lower emissions.

Both CO2 taxes and emissions trading systems could generate new revenue for governments and ensure that consumers are not affected by higher energy costs. Ideally this could create a virtuous circle in which emissions fall, while living standards continue to rise.

Read about the World Bank initiative on carbon pricing