3 ways to sharpen up the carbon pricing narrative – and 4 objections to overcome

As one of the most promising systemic solutions to the climate crisis, carbon pricing – where the external costs of greenhouse gas emissions are reflected in the prices that businesses and consumers pay for carbon-intensive goods and services – has come a long way. But not far enough.

Almost a quarter of global energy emissions are now covered by some kind of carbon pricing, but only an estimated 1% of total emissions are priced high enough to meet Paris Agreement temperature targets, according to World Bank data. For carbon pricing to fulfill its potential as an accelerator of positive change, coverage must be broader and prices must rise significantly.

The primary obstacle is clear: Policies that increase prices without immediately felt benefits for the man or woman in the street carry a high political cost. In 2018, the Gilets Jaunes movement in France demonstrated the political peril of passing the costs of carbon-related taxes on to consumers. In recent years, populist agendas have advanced in many countries, and consumer backlashes against a raft of green policies are becoming commonplace.

In this hyper-sceptical environment, the logic behind and growing evidence of carbon pricing’s potential have been insufficient to create the public consent needed to accelerate progress. Carbon pricing needs a more compelling story. Its advocates need to communicate more creatively and rigorously in order to gain public awareness, understanding and ultimately consent.

Simple lack of awareness is itself a huge barrier. While the economics of carbon pollution are well-known among climate policy-makers, they remain poorly understood by the general public and even some ardent climate activists. Many, for example, confuse carbon pricing policies – which aim to reduce demand for carbon-intensive energy, products and services – with carbon credits and offsets, which have a different, less fundamental role to play (and carry their own distinct communications challenges).

But raising awareness won’t be enough. To win wider support for carbon pricing, its advocates must find a way to reframe three key aspects of the climate debate and address four common objections.

Converting awareness into understanding and acceptance will depend on the extent to which certain aspects of the current climate conversation can be reframed among mainstream audiences. These are powerful perceptions that will be hard to change, but relatively small advances on each front have the potential to significantly increase awareness of the benefits of carbon pricing:

Carbon pricing advocates also need to be prepared with compelling answers to at least four common objections:

Just as no single policy can address climate change, no single communications tactic can drive the change needed. Considerable work is needed by specialists in advertising, market research and public relations to determine what approaches will win people’s hearts and minds. Clarity about the need for more effective storytelling, as well as the perception barriers that need to be overcome, is a necessary first step.

Ultimately, success will depend not only on world-class communications skills and practices, but also a community of interested stakeholders working together to agree on a common narrative, pool their expertise and, not least, their resources. Carbon pricing is too powerful a weapon against climate change to remain sidelined in public debate. More effective and creative communications are needed to tip the balance.