As from its early days, C21 has recognised emission pricing (often termed ‘carbon pricing’, but of course having to relate to all GHG emissions) as a highly relevant climate policy measure. In the view of C21, current stakeholders do not set the international pricing agenda correctly. On the one hand, there is too much emphasis on feel-good examples rather than factual reporting of progress (or lack thereof), as well as an apparent shortage of discussions related to specific implementation. On the other hand, there is too much of a focus on one type of pricing instrument, ‘Emission Trading Systems (ETS)’. ETS receive the bulk of attention despite their apparent deficiencies in all key emission pricing instrument performance criteria.

ICIA’s mission is to change that, and to work with regulators to concretely advance the Climate Incentive System (CIS) pricing instrument.

ICIA promotes CIS as it scores best on the core performance criteria for emission pricing instruments – simplicity, fairness, and effectiveness. These criteria relate both to an instrument’s assumed performance, as well as the political feasibility and speed with which it can be implemented and thus take effect (leading to fast and tangible climate action by setting incentives right).

CIS is based on the principle of setting a meaningful price on all GHG emissions (CO2e). This is done at source, upstream in the value chain. The revenue levied is fully disbursed back to households (as ‘climate income’). This is done in equal amounts, which means that CIS has a distinctively progressive income effect. Most currently available studies indicate that a clear majority of all households would experience a net financial gain, given that affluent households have emission footprints that are a multiple of those of lower-income households (here is a study example). CIS thus offers just transition, avoiding political challenges such as those represented by the Gilets Jaunes protests.

As an alliance among different types of emission pricing stakeholders, ICIA’s agenda is to build knowhow and awareness, as well as specifically foster national policy implementation and international adjustment mechanisms.

For ICIA, C21 cooperates with Citizens Climate Lobby (CCL) and benefited from the financial support of the Swiss Federal Office for the Environment (FOE/BAFU). ICIA partners with the World Bank’s Carbon Pricing Leadership Coalition (CPLC), and presented ICIA in CPLC’s first online technical workshop in May 2020. ICIA has completed an international comparative study on emission pricing instruments and is reviewing, translating, and commenting relevant national studies and surveys in order for these to gain international attention. ICIA further cooperates with different stakeholders in efforts to align terminology, share knowhow, build tools and best practices, and to mutually promote CIS to the general public.