Global Carbon Pricing Mechanism Establishment Act

LEGISLATIVE PROPOSAL: Global Carbon Pricing Mechanism Establishment Act

Preamble

* Recognizing the existential threat posed by climate change, biodiversity loss, and the transgression of planetary boundaries, particularly concerning atmospheric carbon concentration, ocean acidification, and biogeochemical flows.
* Affirming the imperative to accelerate global decarbonization efforts to achieve the goals of the Paris Agreement and limit global warming to 1.5°C above pre-industrial levels.
* Emphasizing the principle of "polluter pays" as a cornerstone of environmental justice, economic efficiency, and intergenerational equity.
* Acknowledging the urgent need for a fair, equitable, and effective global mechanism to internalize the external costs of greenhouse gas emissions and drive sustainable development.

Article 1: Establishment of the Global Carbon Pricing Mechanism (GCPM)

1. A Global Carbon Pricing Mechanism (GCPM) is hereby established to impose a binding price on greenhouse gas emissions across all member states of the World Parliament.
2. The primary objectives of the GCPM are to drive rapid and sustained reductions in global greenhouse gas emissions, foster innovation in low-carbon technologies, and generate dedicated revenue for climate action, ecological restoration, and a just global transition.

Article 2: Scope and Coverage

1. The GCPM shall apply to all major anthropogenic greenhouse gases (GHGs), including but not limited to carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases (F-gases).
2. Coverage shall extend to all significant emission sources across sectors, including energy production and consumption, industrial processes, transportation, agriculture, forestry, and waste management.
3. The World Environmental Organization (WEO) shall develop and maintain detailed methodologies for quantifying, monitoring, reporting, and verifying emissions from all covered sources, ensuring global consistency and transparency.

Article 3: Carbon Price Structure and Evolution

1. A global minimum carbon price shall be set, initially at a level deemed scientifically necessary by the WEO to incentivize significant emission reductions, with a clear, predictable, and progressively increasing trajectory to reach parity with the full social and ecological cost of carbon by 2040.
2. Member states shall be required to implement a national carbon pricing instrument (e.g., a carbon tax or an emissions trading system) that meets or exceeds the global minimum price. National instruments must be designed to be robust, transparent, and non-discriminatory.
3. The WEO shall periodically review and adjust the global minimum carbon price based on the latest scientific assessments, progress towards emission reduction targets, economic impacts, and technological advancements.
4. Member states are strongly encouraged to implement carbon prices above the global minimum to accelerate their decarbonization efforts and enhance their competitive advantage in the green economy.

Article 4: Revenue Utilization and Allocation

1. Revenues generated from the GCPM shall be allocated transparently and equitably, prioritizing climate action, biodiversity conservation, human well-being, and support for vulnerable nations and communities, in strict adherence to the "polluter pays" principle.
2. A minimum of 50% of the net revenues generated by each member state shall be directed towards domestic initiatives, including:
* Investment in renewable energy, energy efficiency, sustainable infrastructure, and green innovation.
* Ecosystem restoration, biodiversity conservation, and nature-based solutions to climate change.
* Research and development of carbon removal technologies and climate-resilient solutions.
* Support for a just transition for workers and communities affected by the shift away from fossil fuels, including retraining programs, social safety nets, and economic diversification.
3. The remaining revenues shall be contributed to a newly established Global Climate and Biodiversity Fund, administered by the WEO, with a focus on:
* Providing substantial financial and technical assistance to developing countries, particularly Least Developed Countries (LDCs) and Small Island Developing States (SIDS), for climate change adaptation, mitigation, and addressing unavoidable loss and damage.
* Funding global biodiversity protection initiatives, including the establishment and management of protected areas, species conservation, and ecosystem restoration across international boundaries and transboundary ecosystems.
* Facilitating technology transfer and capacity building to ensure equitable access to sustainable solutions globally.

Article 5: Governance, Monitoring, and Enforcement

1. The World Environmental Organization (WEO) shall be mandated to oversee the implementation, monitoring, and enforcement of the GCPM, ensuring its effectiveness and fairness.
2. Member states shall establish robust national Monitoring, Reporting, and Verification (MRV) systems, compliant with WEO standards, to accurately track emissions and carbon pricing compliance.
3. The WEO shall develop a mechanism for independent auditing and verification of national MRV systems and revenue utilization reports, ensuring full accountability.
4. Non-compliant member states shall be subject to progressive enforcement measures, which may include:
* Public reporting and naming of non-compliance.
* Financial penalties, with revenues directed to the Global Climate and Biodiversity Fund.
* The imposition of Carbon Border Adjustment Mechanisms (CBAMs) by compliant member states on goods and services originating from non-compliant states, to prevent carbon leakage and maintain a level economic playing field.

Article 6: Equity and Differentiated Responsibilities

1. The principle of common but differentiated responsibilities and respective capabilities shall guide the implementation of the GCPM, acknowledging historical emissions and development needs.
2. Specific provisions shall be made to support developing countries in transitioning to low-carbon, climate-resilient economies, including preferential access to technology transfer, enhanced capacity building, and substantial financial assistance from the Global Climate and Biodiversity Fund.
3. The WEO shall establish a regular review mechanism to assess the socio-economic and environmental impacts of the GCPM on different regions and vulnerable groups, proposing adjustments as necessary to ensure fairness, prevent disproportionate burdens, and promote equitable development.

Article 7: Entry into Force

1. This Act shall enter into force twelve (12) months after its adoption by the World Parliament, allowing member states sufficient time to prepare for its comprehensive implementation.
2. The WEO shall publish detailed guidelines, technical standards, and support frameworks for the implementation of the GCPM within six (6) months of the Act's adoption.