Carbon Pricing Needs ‘Radical Redesign,’ Says Asset Owner Group

An influential investor coalition including Aviva Plc, Allianz SE and the California Public Employees’ Retirement System said a “radical redesign” of carbon pricing policies is needed to achieve net-zero emissions for the world economy.

The Net-Zero Asset Owner Alliance, made up of 73 institutional investors with combined assets of $10.6 trillion, called on more governments to introduce legally-binding science-based carbon prices, and governments with existing systems in place to expand their coverage. In a report published Wednesday, the group said a more robust price mechanism would encourage investment in vital low-carbon technologies.