Limiting global warming to 1.5 to 2°C necessitates reducing emissions significantly this decade, as highlighted by the Intergovernmental Panel on Climate Change (IPCC). This ambitious goal requires annual investments of at least $2.4 trillion in areas like public transport, renewable energy, urban planning, and land management.

While these investments might seem steep, the costs of inaction—such as extreme weather damages, productivity losses, and public health issues—are far greater. Governments that signed the Paris Agreement often lack the resources and political will to implement necessary mitigation measures.

Carbon markets play a crucial role in achieving greenhouse gas emission targets. By assigning a direct economic cost to carbon emissions, these markets incentivize companies to reduce their carbon footprint. However, inconsistent carbon prices across markets have hindered effective decarbonization.

Implementing a carbon floor pricing system is essential for redirecting investments towards sustainable energy. Despite fears of losing international competitiveness, especially in carbon-intensive industries, a fair carbon price is crucial. According to experts like Joseph Stiglitz and Lord Nicholas Stern, a price of $75 to $100 per ton of CO2 is necessary to account for environmental and social costs, and to encourage international cooperation in climate efforts.

In his latest column in NTN24, Alexis Leroy, CEO & Founder of ALLCOT, highlights the pressing need to fairly value carbon credits to achieve climate goals.