Oil and gas giants are betting the shop on a carbon price being implemented in order to tackle climate change. But experts speaking at today's Economist Energy Summit in London agreed that an effective global carbon price just isn’t going to happen.
Last month ten major fossil fuel companies, including Shell, Total, BP, and Statoil, announced a joint climate declaration recognising the need to limit the global average temperature rise to 2C. In order to achieve this, a “widespread and effective pricing of carbon emissions” is needed alongside more gas and renewables, they argued.
But as Henry Tricks, energy and commodities editor at the Economist, put to executives at BP, Statoil and Total: “You’re all basing a lot of your future scenarios on the idea that there will be a carbon price. You’re calling for it, and yet most people don’t agree that it’s going to happen on a global scale. What is needed for it to happen?”