2. There Will Be a Global Price On Carbon
When China started a national emissions trading scheme back in 2017, it had a few hiccups, to begin with, but by the early 2020s, the scheme was responsible for fifty percent of China’s emissions reductions. The success of their scheme encouraged other nations to set up their own emissions trading schemes causing a real shift in fossil-energy prices which in turn encouraged nations across the globe to invest in renewables.
When the European Commission rectified the over-allocation of allowances in the EU Emissions Trading Scheme, the European and Chinese schemes were able to join together. By the mid 2020s, Latin American and Canadian-Californian schemes wanted in on the action, setting the stage for a global carbon price by 2030. Meaning, one price for the right to emit a tonne of CO2 leads to a massive incentive to switch to clean energy.
