E3CP: Effective, Efficient, Equitable Carbon Pricing

A Call for Effective, Efficient and Equitable Carbon Pricing in the Paris Outcome

Dear [COP21 Delegate],

You have a unique opportunity and responsibility that has never existed before.

For the first time in history local communities, regional and national governments, civil society, leaders of business and multilateral institutions are convening in unprecedented alliances to urge countries and companies around the world to put a price on carbon. As a result, the discussion is moving beyond if carbon should be priced, to how carbon will be priced.

Any outcome adopted at the upcoming COP21 must successfully lay the foundations for how we, as a community of nations, address the key drivers of climate change—including the economy. Carbon pricing is a critical strategy for accelerating economic correction, achieving emissions reductions, and creating an enabling environment for climate finance and long-term resilient growth.

Although our priorities are diverse, we, the undersigned, agree that to address the fundamental economic drivers of climate change the final agreement must contain principles and elements to guide Member States in developing and deploying effective, efficient and equitable carbon pricing (E3CP) policies:

  • Effective in reducing economy-wide absolute emissions while supporting domestic economic growth across all sectors.
  • Efficient at minimizing the cost of implementation while maximizing environmental, economic and social co-benefits.
  • Equitable by avoiding disproportionate burdens and protecting vulnerable populations from unjust or negative economic or environmental impacts while building economic value at the human scale for individuals and their communities.

E3CP will send a crucial, long-term political and economic signal to motivate developed and developing countries to better address the drivers of climate change through their national efforts. E3CP will provide the private-sector with the clear price signals necessary for climate-smart investment decisions and ensure adaptation and mitigation funding and investment go further with greater impact. E3CP will increase effectiveness of financial flows and lead to greater resource availability and economic empowerment within developing nations. Ultimately, E3CP can save lives, reduce conflict and improve the well-being of future generations.

We ask you to support and strengthen the current language on carbon pricing and ensure the basic elements, principles and fundamental instruments of efficient, effective and equitable carbon pricing are included in the Paris COP21 outcome.

This cannot and should not be deferred to future negotiations. We call upon you to act now, and we stand ready to support you in ensuring a strong outcome that benefits all nations and addresses the core economic drivers of climate change.


Jose Aguto
Legislative Secretary Sustainable Energy and Environment Friends Committee on National Legislation

Kjartan Almenning
Chair Én Verden – WFM Norway

Don Cheadle

Bob Inglis
Executive Director, republicEn.org

Earl James 
Executive Director Citizens for Global Solutions

David Jenkins
President, Conservatives for Responsible Stewardship

Tom Kelly
Executive Director KyotoUSA

Craig Lewis
Executive Director Clean Coalition

Bob Musil
President, The Rachel Carson Council

Mark Reynolds
Executive Director, Citizens’ Climate Lobby

Joseph E. Schwartzberg
Director, The Workable World Trust

Paul Severance
Chair, Elders Climate Action

Bill Shireman
President and CEO Future 500

George P. Shultz
Distinguished Fellow, Hoover Institution, Stanford University; Former U.S. Secretary of State

Jerry Taylor
President, Niskanen Center

Catherine Thomasson, MD
Executive Director, Physicians for Social Responsibility

Carol Werner
Executive Director, Environmental and Energy Study Institute