Leaving No One Behind: Carbon Pricing in Israel & Germany

Artist: Daniel Goldfarb

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On November 5th, 2020, IPPI hosted the experts’ workshop “Leaving No One Behind – Carbon Pricing in Israel & Germany,” in collaboration with the Israel Ministry of Environmental Protection, the Bank of Israel, and with support by the Climate Fund of the German Federal Foreign Office, represented by the German Embassy in Tel Aviv. Experts from Germany and Israel came together to discuss the effects of carbon pricing on households and the industry.

Carbon pricing has increasingly gained attention across public debates in Israel, Germany and other European countries, as it is considered an efficient policy instrument for reducing carbon emissions across large parts of the economy. Putting a price on CO₂ emissions helps to correct a significant market failure, which occurs when the polluting actors do not pay for the damage caused by the carbon emissions of their economic activities. Charging emitters per ton of the CO₂ emissions embedded in their consumption sets an incentive to reduce emission-intensive behaviors and transition to sustainable, more climate-friendly practices. In the UK, for example, carbon pricing has been effective. According to a 2018 OECD report, carbon pricing led to a 58% reduction in emissions in the electricity sector and a 25% reduction in emissions in the overall economy.

The German Ambassador to Israel, H.E. Dr. Susanne Wasum-Rainer, kicked off the event by drawing attention to the urgent task of addressing climate change: “2020 was supposed to be an important year, with many opportunities to bring climate change and climate protection to the center of public awareness. Instead, our attention was drawn to the pandemic.” Nevertheless, stressed Dr. Wasum-Rainer, the fact that global warming and climate change continue to be a shared challenge for societies cannot be ignored, and it is crucial to take actions together to achieve a sustainable future. Dr. Wasum-Rainer expressed her excitement and encouragement towards the online workshop that gathered German and Israeli experts to discuss carbon pricing as a crucial step in promoting the transition to a low-carbon economy in Israel and in Germany.

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