Few countries are increasing their carbon prices at a fast enough rate in order to meet their Paris Agreement commitments, according to a new report.

The Organisation for Economic Cooperation & Development’s (OECD’s) “Effective Carbon Rates 2018” study found that it will take until 2095 for carbon prices to meet real costs at the current rate of progress.

The carbon pricing gap – which compares actual carbon prices and real climate costs – has fallen from 83% in 2012 to 76.5% in 2018.

The UK’s carbon gap sits at 42.2%, compared with 26.6% in Switzerland and 78.9% in Australia.

‘Wasting an opportunity’

OECD Secretary-General Angel Gurría said: “The gulf between today’s carbon prices and the actual cost of emissions to our planet is unacceptable.

“Pricing carbon correctly is a concrete and cost-effective way to slow climate change.

“We are wasting an opportunity to steer our economies along a low-carbon growth path and losing precious time with every day that passes.”

> Read the report online