Setting the CRIF Carbon Price

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Presentation transcript:

Setting the CRIF Carbon Price 10 November 2016

Project Evaluation Tool

SC-CO2 Technical Support Document Source: 1. Interagency Working Group on Social Cost of Greenhouse Gases, “Technical Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866” (United States Office of Management and Budget, August 2016), https://www.whitehouse.gov/omb/oira/social-cost-of-carbon.

SC-CO2 Technical Support Document Source: 1. Interagency Working Group on Social Cost of Greenhouse Gases, “Technical Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866” (United States Office of Management and Budget, August 2016), https://www.whitehouse.gov/omb/oira/social-cost-of-carbon.

Market Prices Source: World Bank Group, “Carbon Pricing Watch 2016,” accessed November 9, 2016, https://openknowledge.worldbank.org/handle/10986/24288.

Market Prices Source: World Bank Group, “Carbon Pricing Watch 2016,” accessed November 9, 2016, https://openknowledge.worldbank.org/handle/10986/24288.

Path Forward Anchor to: market price, regulatory price, or estimated social cost? Choose specific anchor (BC tax? SC-CO2 @ 3%/yr? etc.) Single value (e.g. 2020) or continuous series (e.g. follow market)? Agree on CRIF advance horizon (15 years?) Agree on CRIF advance discounting, if any Set policy re municipality freedom to adopt or alter recommended price