With the countdown on to the Paris climate change conference, there is clear evidence of growing momentum to put a price on carbon. The growth of carbon pricing around the world has been substantial. Since January 2012, the number of carbon pricing instruments already implemented or scheduled for implementation has almost doubled, jumping from 20 to 38. Moreover, the share of emissions covered by carbon pricing has increased threefold over the last decade.

Ending poverty and stabilizing climate change will be two unprecedented global achievements and two major steps toward sustainable development. But the two objectives cannot be considered in isolation: they need to be jointly tackled through an integrated strategy. This report brings together those two objectives and explores how they can more easily be achieved if considered together. It examines the potential impact of climate change and climate policies on poverty reduction.

This study is designed to analyze the energy efficiency policies in seven countries that were successful in achieving low energy intensities or in reducing their energy intensity considerably. The study analyzes the evolution of the energy intensity of these countries from 1990 to 2007, identifying points of inflection in the progress towards improvements. Changes to the policy agenda immediately upstream are explored in an effort to identify cause and affect relationships in energy efficiency improvements.

As a development institution focused on reducing poverty and boosting shared prosperity, the World Bank is working in many countries that suffer from a lack of basic services such as waste management, transportation, and access to modern energy. Addressing these development challenges often has an impact on the emission of short-lived climate pollutants (SLCPs) among them methane and tropospheric ozone, black carbon (BC), and hydrofluorocarbons (HFCs).

Stabilizing climate change entails reducing net emissions of carbon dioxide (CO2) to zero. This report outlines three principles to guide countries in their efforts to create a zero-carbon future: (a) planning ahead with an eye on the end goal; (b) going beyond carbon pricing with a policy package that triggers changes in investment patterns, technology, and behaviors; and (c) protecting poor people and avoiding concentrated losses. Although countries at different levels of income and with different endowments will adopt different strategies, all have a role to play.

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