Sustaining momentum beyond COP21: consensus into action Although carbon pricing isn’t on the COP21 agenda as a stand-alone item, “The INDC implementation offers an excellent opportunity for countries to roll up their sleeves and learn from others as they use carbon pricing as a cornerstone of a national climate mitigation strategy,” believes James Close of the World Bank. This could have implications for the rate at which businesses adopt carbon pricing strategies, particularly in countries where there is no formal structure for putting a price on carbon emissions. There are other barriers to implementation also. “Undoubtedly, carbon markets will be a controversial and tough topic in the COP negotiation, as they could affect, among other things, international trade agreements, some of which have only recently been reached,” says José Manuel Entrecanales Domecq, Chairman and CEO of Acciona. “However, strong signs encouraging carbon pricing are a must as one of the main COP21 conclusions.” Our survey shows businesses around the world taking action on carbon pricing, and opening up to the benefits it can bring in terms of competitiveness. The next challenge will be maintaining the momentum that has been seen in the run-up to COP21 through 2016 and beyond. As discussions at COP21 in Seventy-eight percent of Seventy-three percent of Paris and elsewhere widen, businesses surveyed believe respondents in countries the interest in harmonized, carbon pricing can foster without carbon pricing reliable and transparent innovation and trigger mechanisms believe such methods for carbon pricing is initiatives beneficial to mechanisms will be in place likely to intensify. performance. in the next five years. My greatest hope for COP21 is that it will send the My greatest hope for COP21 is that it will send the signals signals the major markets need in order to implement the major markets need in order to implement policies policies that will achieve emissions reduction targets...if that will achieve emissions reduction targets...if we have we have the US and China setting ambitious targets for ‘ the US and China setting ambitious targets for emissions emissions reductions, it will send a significant reductions, it will send a significant message to the global message to the global investment community. investment community. ‘ 16 I Shifting the carbon pricing debate