Communication crucial for success of carbon pricing schemes – study

There is no general recipe for a successful carbon pricing scheme, but its introduction should be accompanied by open and targeted communication, according to an analysis by Berlin-based think tank adelphi. "Above all, the term ‘tax’ often has a negative connotation, which is why the emphasis should be placed on the positive environmental effects that CO2 pricing is basically aimed at," adelphi writes in a press release. The researchers advise that good communication be tailored to stakeholders and internally consistent, messaging tested, revenue directed towards the goal of the policy, and concerns around fairness and carbon leakage convincingly addressed. The comparative analysis focuses on case studies from Australia, Canada, Colombia, France, Sweden and Switzerland and examines how policy design and communication contributed to the success or failure of the countries' systems.

Germany has been part of the European Union Emissions Trading System (ETS) for years, but emissions from sectors such as transport and buildings are not covered. For these, the government is currently debating different forms of CO₂ pricing, including a carbon tax or a separate emissions trading system. A decision is expected for a meeting of the climate cabinet on 20 September.