Session 5 presentation from the 4th Strategic Dialogue of the Carbon Market, 15-16 May 2019

1. Communicating
Carbon Pricing
16 May 2019
Dominik Englert
Economist, World Bank

2. Why is it important to communicate
carbon pricing?
● Key stakeholders becoming supportive advocates early on
● Broad-based support and valuable feedback on policy
● A more durable policy through changes in government
● Anticipating opposition

3. Key findings
● Narratives based on values, identity
● Convey trust and fairness
● Address salient concerns
● Possibly through the visible use of
revenues
● Evidence-based on research and testing
● Iterative communication design from the
outset and at all stages
● Good communications need good policy

4. The social science of message design
● Communications is a science
● Communications are driven by narratives of
shared values and identity
● People are averse to cost and discount the future
● Research and testing are essential

5. The standard narrative
Climate change is a dangerous, costly future threat
So we need to put a “price on carbon”
This is how carbon pricing works
A small cost now averts larger costs in the future
And, it brings us other benefits

6. Keeping it relevant
“We need to remember that
economists are not normal
people and don’t use the
language normal people use!”
Chris Ragan
Chair of the Canadian
Ecofiscal Commission

7. Carbon pricing is a fair way to share
responsibility for the carbon pollution that
causes climate change and to reward the
companies that are most efficient and pollute
the least.
Carbon pricing strikes the right balance. It
allows us to do what’s right for the
environment and encourages us to shift to
cleaner and healthier renewable energy.
Optimal narrative in Canadian testing

8. Understanding national
circumstances
Political system and
level of polarization
Dependence on
domestic fossil fuels
Relative concerns
Language and
messages
Speak across boundaries
Language that respects
role of fossil fuels
Language that warns of
vulnerability from
overdependence
Choose main
message e.g.: climate
change or air quality
Audiences Open audiences
Audience directly
affected by carbon
price (e.g.: those
working in energy
industry)
Identify primary
concerns for different
audiences
Integrating
communications
and policy
Ensure carbon price does
what it says
Consult affected
groups and consider
their concerns in
policy design
Focus on key
concerns

9. CALIFORNIA CHILE
Understanding national
circumstances
● Air pollution important concern
● A positive vision for the future
“We need to be very vocal about the
benefits, the means for the transition, the
options brought by new technology,
innovation, employment, health and other
issues. That’s what will give us the
broader buy-in for wider policy.”
Juan Pedro Searle, Head of Climate Change Unit,
Sustainable Development Division, Ministry of
Energy, Chile
• Broad popular support for
addressing climate change,
clean transport like electric
cars, light rail etc.
• Some scepticism of carbon
price
• Visible revenue use

10. Three challenges to communicating carbon pricing
Challenge 1
Whether or not to proactively communicate carbon pricing
● High-profile, independent
legislation required?
● Is significant opposition likely?
● Carbon pricing associated
with specific political party?
● Relevance of public opinion
on policymaking
Reasons for proactive communication
Concerns with proactive communications
● Set tone of the debate, control messaging
● Necessary if visibility is important for effectiveness
● Communication may draw critical attention
● Level of trust in government affects trust public places
in government explanations
Factors to consider
Importance of research

11. Three challenges to communicating carbon pricing
Challenge 2
Whether or not to focus on climate change
● Testing of public concern and
understanding of the issue
● Other, more prominent issues
(e.g.: air pollution)?
● Level of (political) polarization
on the issue
High prominence to climate change
Low prominence to climate change
● Climate change = challenge and opportunity
● Climate change as current concern
● Co-benefits: energy transition, clean air, etc.
● Other (more prominent) issues e.g. air pollution, green
economy
● Energy transition and technological transformation
Factors to consider

12. Three challenges to communicating carbon pricing
Challenge 3
Labelling a carbon tax
Label as a tax
Avoid the t-word
● Public understands the concept of a tax;
how revenue is spent becomes main issue
● Honest, calls it what it is
● “Tax” creates negative frame
Tax
Fee
Charge
Levy
Energy Climate Contribution
Carbon price
Narrative / language testing

13. Visible revenue use (RGGI)

14. Visible revenue use
(California)

15. Questions?

16. Stay involved
8th December 2018
GET IN TOUCH
Download the report
http://bit.ly/CommunicatingCP
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pmrsecretariat@worldbank.org
www.thepmr.org
cplcsecretariat@worldbank.org
www.carbonpricingleadership.org