The Straits Times
| Singapore studying option for emitters to buy international offsets
Marissa Lee, a senior associate at consultancy Global Counsel, which advises firms on climate and sustainability policy, said doing so forces organisations and consumers to consider the cost of pollution and environmental harm in their decision-making.
"As for how effective a carbon tax will be in changing behaviours, that depends on how the carbon price is set," she added.
"If the carbon price is set too low, businesses will not be motivated to improve their energy efficiency or invest in changes that would hit their immediate bottom line."
Global Counsel's Ms Lee said the Article 6 rules clearly demonstrate that parties to the Paris Agreement are concerned about how to avoid double-counting emissions reductions. "This sets an expectation for standard-setting bodies to clarify which credits have been issued with a corresponding adjustment and which have not in the voluntary carbon markets," she added.