Global leaders at the SDG Lounge highlighted how carbon pricing policies are driving innovation across industries, reducing emissions, and accelerating the shift to a cleaner economy. From carbon pricing to industrial decarbonization, these measures are reshaping business operations, spurring investment in sustainable technologies, and addressing the climate crisis.
Capping Emissions: Canada Leads the Way
Canada, which introduced a national price on carbon last year, is set to impose a cap on emissions from oil and gas production, Prime Minister Justin Trudeau told the audience at the SDG Lounge.
“Soon, we will become the first major fossil-fuel-producing nation to cap emissions from oil and gas production,” he said, adding that this will “compel them to reinvest their record profits back into technology that drives down emissions and creates good jobs for Canadians.”
“For tens of millions of people across the globe, climate change is not an abstraction. It is real, it is costly, and it can be deadly,” he emphasized. “Our only choice as responsible leaders,” he continued, “is to take this threat seriously, propose real solutions that meet the scale of the climate challenge, and ensure that no one is left behind as we undergo the greatest economic transformation since the Industrial Revolution.”
Financial incentives for a clean economy
President of the European Commission Ursula von der Leyen echoed this sentiment, saying, “Carbon pricing transforms pollution into innovation. It sends a clear message to the business world: if you pollute, you pay. But if you go clean, it pays off.”
“Just imagine,” she added, “if more countries put a price on carbon, we could cut emissions worldwide while generating enormous revenues for the clean transition. These funds could be reinvested in a social climate fund or in innovation and R&D.”
Reaching climate neutrality goals requires that decarbonization and competitiveness go hand in hand. Catherine Stewart, Canada’s Ambassador for Climate Change, announced plans for a new clean industrial deal to complement the European Green Deal. She also mentioned exploring incentives for “nature credits.” With carbon pricing well-established in the EU, she sees the region continuing to take the lead. “It’s been almost 20 years since we first put a price on carbon through the emissions trading system. Over €200 billion has been generated since, and 100% of it is invested in the clean transition.”
Industrial Decarbonization: Turning Challenges into Opportunities
A panel of leading policymakers and private-sector innovators highlighted the tangible benefits of industrial decarbonization and the effectiveness of tools like carbon contracts and investment tax credits. “Clean and green is both profitable and sustainable,” said Mahendra Singhi, Member of the Board, Strategic Advisor, and Former CEO of Dalmia Cement. He described their “one philosophy,” stating that despite financial challenges in the Global South, they are moving forward. “In 2018, we were one of the first manufacturing companies in the world to commit to net zero and carbon-negative cement by 2040.”
Dominik von Achten, Chairman of the Managing Board at Heidelberg Materials, pointed out that 6 to 8% of global emissions come from cement. “That’s a problem, but it’s also an opportunity. If we want to return to the 1.5-degree path, this is the lever to do it—if we scale up and speed up fast enough.” He acknowledged the high costs but shared that Heidelberg is already working on technical solutions. “We’ll prove this in 2025 with our first net-zero cement plant in Breivik, Norway,” he promised.
Sean Collins, CEO of Varme Energy, highlighted the issue of waste, noting that 90% of post-recycled waste still ends up in landfills. “Facilities like ours know how to convert waste to energy.”
The need for coordinated global action and equitable solutions
Laurence Tubiana, CEO of the European Climate Foundation, suggested that while carbon pricing is essential, it’s only one tool for achieving net-zero emissions by mid-century. “We need to use all the elements of trade policy that can help. It’s a mixed bag of instruments, but let’s be practical and pragmatic.” She emphasized that these discussions should happen between groups of countries but warned against protectionist actions.
Ngozi Okonjo-Iweala, Director- General of the World Trade Organization, also stressed the importance of trade policies in reducing emissions. She noted that the private sector is concerned about the fragmentation of climate policies, which risks slowing investment and progress toward net zero. “Diversity in policy and pricing is a reality. Countries are at different stages of development and decarbonization, and they have different needs. Today, there are over 78 different carbon pricing schemes worldwide.”
Accelerating the Energy Transition
Selwin C. Hart, Special Adviser to the Secretary-General on Climate Action and Just Transition, expressed concerns about the global response to the climate crisis. “We’re witnessing, in real time, the consequences of global inaction on climate change—record extreme weather events are devastating lives and livelihoods across the world.”
He also noted that countries are currently spending nine times more on making fossil fuels cheaper than on cleaner alternatives. While the energy transition is accelerating, he identified three critical challenges: the pace of change is still too slow, the policy environment remains “incoherent, uncertain, and unpredictable,” and there is ongoing inequity, with the developing world being left behind.
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