ABSTRACT
Governments across the world must commit to net-zero goals and finally agree to price carbon and gradually raise prices to achieve net zero and internalise the cost of pollution and global warming across all markets and sectors. This chapter sets out institutional constructs that can help us secure our goals – principally the creation of a World Carbon Organization (WCO) and the creation of National Carbon Banks. A WCO could referee disputes between and among countries over carbon pricing and its consistent application and adjudicate the application of the carbon border tax. National Carbon Banks can simultaneously pursue and help create sustained deflationary pressure on greenhouse gases (GHG) emissions as economies and firms set net-zero goals and seek to achieve them. The WCO is needed if, as is likely, a carbon border tariff is applied to discourage free riders and the weakest link phenomenon, where some countries consistently under deliver thus undermining the entire GHG emissions goal.
