Recommendation 11

COP26 must aim to secure a form of realistic pricing of carbon output that prevents carbon offshoring and fully prices in the cost of the production of goods and transport. Building on the G7 and G20 to ensure the burden is carried by the commissioning country, and to incentivise change in producing nations, will change a simple equation based on the cost of energy to one based on the cost to the planet. The UK’s financial services sector, and particularly its insurance industry, is well placed to understand these costs. Using new forms of finance to look at cost-sharing based on innovative ledgers would provide an opportunity to realise the impact and share the reward of growth, while encouraging cross-industry and jurisdictional cooperation on climate targets. (Paragraph 30) Covid-19