GUIDE TO COMMUNICATING CARBON PRICING GUIDE TO COMMUNICATING CARBON PRICING DECEMBER 2018 Louise Comeau C L I M A T E iris communications outreach © 2018 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. 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Cover photo: Adapted from the original photo by David Hsu (CC BY-NC-ND 2.0) Icons for the 8 steps: Illustrations by Oliver Cowan Acknowledgments The Guide to Communicating Carbon Pricing was prepared for the Partnership for Market Readiness (PMR) and Carbon Pricing Leadership Coalition (CPLC) by a team of consultants led by Climate Outreach with support from Climate Focus, Dr. Louise Comeau and Fenton Communications. Daniel Besley and Isabel Saldarriaga (World Bank) provided substantive input and managed the project. The lead authors of the Guide to Communicating Carbon Pricing are George Marshall (Climate Outreach) and Darragh Conway (Climate Focus). Robin Webster (Climate Outreach) led the preparation of the executive briefs and the executive summary was co-drafted by Lieke ‘t Gilde (Climate Focus). Dr. Louise Comeau delivered a comprehensive analysis of carbon pricing communications in Canada. Ben Wyskida (Fenton Communications) and Julia Peek (Fenton Communications) provided professional insights for developing a communications campaign. In addition, the following persons provided valuable editing and other kinds of support in the preparation of the Guide to Communicating Carbon Pricing: Jamie Clarke (Climate Outreach), Adriaan Korthuis (Climate Focus), Tara Clarke (Climate Outreach) and Léane de Laigue (Climate Outreach). We sincerely thank those experts who shared their practical insights and knowledge relating to carbon pricing communications through interviews and review of the Guide. These include (in alphabetical order): Susanne Akerfeldt, Senior Legal Advisor, Swedish Ministry of Finance; Jennifer Andreassen, Communications Specialist, Environmental Defense Fund; John Connor, Chief Executive Officer of the Climate Institute of Australia; Eric Denhoff, Deputy Minister, Alberta Climate Change Office; Femke de Jong, Policy Director, Carbon Market Watch; Estiven Gonzalez, Analyst of Energy Policy and International Relations, PMR Costa Rica; Sharlin Hemraj, Director: Environmental and Fuel Taxes at National Treasury, South Africa; David Hone, Environment lead, Shell; Thomas Kerr, Principal Climate Policy Officer, World Bank Group; Katie Kouchakji, Managing Director, The International Emissions Trading Association (IETA); John Moffet, Acting Associate Assistant Deputy Minister, Environment & Climate Change, Government of Canada; Ted Nordhaus, Director of Research, The Breakthrough Institute; Chris Ragan, Chair of the Canadian Ecofiscal Commission; Juan Pedro Searle, Head of Climate Change Unit Sustainable Development Division, Ministry of Energy, PMR Chile; Tom Skladzien, National Economic and Industry Advisor to the Australian Manufacturers Workers’ Union; Jerry Taylor, President, Niskanen Center; Paulette Van Ommen, Global Climate Lead, Royal DSM; Nicolás Westenenk, Project Manager, PMR Chile; Elizabeth Willmott, Environmental Sustainability Program Manager, Microsoft; Ceren Solak Yilmaz, Sustainability Supervisor: Project Finance Department, Garanti; Stanley Young, Communications Director, California Air Resources Board; Zhao Xiaolu, Project Manager: China Climate Initiative. We also wish to acknowledge input and peer review provided by a range of other experts: Erik van Andel (Dutch Emissions Authority), Jennifer Andreassen Burke (Environmental Defense Fund), and Claude Côté (Ministry of Sustainable Development, Environment and the Fight Against Climate Change, Quebec). Finally, we thank colleagues at the World Bank Group who also reviewed the report and provided useful input and feedback: Dominik Englert, Celine Ramstein, Elisabeth Mealey, Sarah Moyer, Alan Lee, Ayesha Malik (IFC) and Thomas Erb. The Guide (and executive briefs) was designed by Elise de Laigue (Explore Communications). Contents Executive summary......................................................................................................... 9 Introduction.................................................................................................................... 13 Who is this Guide for?..................................................................................................................................... 13 Why is the term “carbon pricing” used in this Guide?................................................................................ 13 Where does the evidence come from?......................................................................................................... 13 Why is effective communication important and how does it relate to policy?...................................... 14 What does this Guide not cover?................................................................................................................... 14 How to use this Guide..................................................................................................................................... 15 8 steps to developing a carbon pricing communications campaign........................................................ 15 10 principles for carbon pricing communications..................................................... 16 Step 1: Preparing for communications design........................................................... 18 Incorporate communications advice from the outset of the policy design............................................20 Ask: what objectives do communications seek to achieve?......................................................................20 Define specific objectives...............................................................................................................................20 Integrate and prioritize objectives................................................................................................................23 Identify the national circumstances relevant to communicating carbon pricing..................................24 Step 2: Identifying audiences....................................................................................... 28 The three main categories of audiences......................................................................................................29 Segmenting audiences by attitudes and values.........................................................................................30 Strategic focus on different audiences.........................................................................................................31 Strategies for communicating with opponents...........................................................................................32 Step 3: Research.............................................................................................................36 What research can achieve............................................................................................................................37 Communications research methods............................................................................................................37 Applying research to the design and testing of pricing communications...............................................38 Step 4: Designing the messages................................................................................... 42 How people receive information and form attitudes................................................................................43 Communicating about climate change in carbon pricing narratives.......................................................44 Designing trial narratives for testing............................................................................................................ 45 Language that has worked for communicating carbon pricing................................................................46 Labeling a carbon tax..................................................................................................................................... 50 Language and narratives that may not work for communicating carbon pricing................................. 51 Step 5: Explaining how carbon pricing works............................................................. 55 Simple terminology......................................................................................................................................... 56 Simple explanations........................................................................................................................................ 57 Step 6: Choosing communicators................................................................................ 59 The importance of trust................................................................................................................................. 60 The role of communicators............................................................................................................................ 60 Recruiting trusted communicators............................................................................................................... 61 Use of celebrities............................................................................................................................................. 62 Step 7: Integrating communications with policy........................................................63 Integrating communications, policymaking, and stakeholder engagement.......................................... 65 The building blocks of communicable policy.............................................................................................. 69 Integrating carbon pricing with other policies............................................................................................70 Showing results...............................................................................................................................................71 Step 8: Designing a communications campaign.........................................................73 What is a campaign?........................................................................................................................................ 74 Defining the campaign................................................................................................................................... 74 Creating a campaign matrix........................................................................................................................... 76 What is the overarching campaign concept?...............................................................................................77 Engaging target audiences.............................................................................................................................77 Choosing media and tactics...........................................................................................................................78 Briefing an agency...........................................................................................................................................81 What can go wrong?........................................................................................................................................81 Appendices.....................................................................................................................83 Appendix A: The social science of message design....................................................................................84 Appendix B: Explaining research methodologies.......................................................................................87 Appendix C: Explaining carbon pricing.........................................................................................................89 Appendix D: Carbon pricing narratives for testing.....................................................................................92 Appendix E: Managing counter-arguments................................................................................................. 96 References......................................................................................................................99 LIST OF TABLES Table 1.1 Gaining and maintaining support................................................................................................21 Table 1.2 Ensuring the visibility of the price signal....................................................................................22 Table 1.3 Ensuring an informed debate......................................................................................................22 Table 1.4 Obtaining feedback from stakeholder groups..........................................................................23 Table 1.5 Political system and level of polarization................................................................................... 25 Table 1.6 Dependence on domestic fossil fuels......................................................................................... 26 Table 1.7 Awareness of and concern regarding climate change..............................................................27 Table 2.1 Communication approaches for distinct audience categories................................................30 Table 2.2 Questions for identifying opposition and strategic communications responses................32 Table 3.1 Exploratory questions for narrative design...............................................................................39 Table 4.1 Narratives that have been found to be effective in a range of different countries.............46 Table 5.1 Technical terms used in carbon pricing, and potential simplified forms............................... 57 Table 8.1 An example matrix for developing a campaign strategy.........................................................77 Table 8.2 An example matrix for developing a campaign strategy with combined tactics for a target audience within a given budget................................................................................................80 LIST OF BOXES A closer look 1.2 How political polarization is reflected in audience attitudes..................................... 25 Case study 2.1 Opposition to Australia’s carbon pricing mechanism.....................................................34 A closer look 3.1 The role of modeling in communications......................................................................38 Case study 4.1 Optimal public narratives – Canadian research...............................................................47 Case study 4.2 Costa Rica – focusing on vehicle pollution.......................................................................48 Case study 4.3 Communicating visible expenditure in California........................................................... 50 Case study 4.4 Communications lessons from the 2015 Swiss referendum......................................... 53 Case study 7.1 Stakeholder engagement in South Africa......................................................................... 68 A closer look 7.1 Citizens’ assemblies.......................................................................................................... 69 LIST OF FIGURES Figure 4.1 Visible revenue use...................................................................................................................... 50 Figure 4.2 Technical economic terms.......................................................................................................... 52 Figure 7.1 Integrating communications with policy................................................................................... 66 Figure 7.2 Getting revenue use right...........................................................................................................70 Figure 7.3 Keeping it simple..........................................................................................................................70 Executive summary  Effective communications are integral to designing is poorly designed—and if there is strong opposition, and implementing a carbon price. They provide the weak communications can make the situation worse. means for building acceptance internally across gov- Once a good policy has been created, communications ernment and externally with key stakeholders and the should promote clear examples of its outcomes, and wider public. This shared understanding and accep- the policy should include mechanisms for evaluating tance is essential for building a robust policy that can its effectiveness. At the same time, government claims be sustained through electoral and economic cycles. for what carbon pricing will achieve—especially in terms of the economic benefits—should be realistic This Guide provides practical, step-by-step guidance and avoid creating unrealistic expectations. on how to develop communications strategies for carbon pricing, and how to integrate communications Visible use of carbon price revenues into the policymaking process. The evidence is drawn from a large body of formal research, including over is often key 30 interviews and an international survey of leading People are more likely to accept a carbon price when practitioners from governments, civil society, and the revenues from it are spent on projects that are business. consistent with environmental goals, are of high public concern, or are returned to the public as re- How to communicate carbon bates or tax breaks. In some jurisdictions, the visible application of the revenue should be the dominant pricing successfully: key narrative, ahead of the complex arguments around findings market mechanisms. Good communications require good Emphasizing non-climate benefits policy may be preferable to focusing on climate change To effectively communicate a carbon pricing policy, the policy itself needs to be effective and robust. Framing carbon pricing as a policy response to climate There are no ”magic words” that can save a policy if it change may work well in jurisdictions where levels Guide to communicating carbon pricing 9 of public concern about climate change are high. In the policy and how revenues are used. Communica- jurisdictions where awareness of climate change is tions are an iterative process and messaging needs to low, or the issue is politically polarized, communica- be regularly evaluated, reviewed, and revised as the tions should emphasize the other benefits of carbon policy is designed and implemented, in order for it to pricing: for example, reducing air pollution, making be successful. energy supplies more secure, or creating jobs in clean energy. Climate change should always be part of the Set out clear objectives discussion, but where and how it is mentioned should reflect the concerns and priorities of each different The design of a communications strategy should be audience. guided by the objectives it seeks to achieve. Identify- ing and prioritizing objectives at the outset is there - fore an important part of the process. Good communications are built around values Define and engage priority audiences Carbon pricing communications should explain how across the political spectrum the policy benefits different audiences in ways that are relevant to their real motivations, values, and Defining priority audiences early on will help in tai- concerns. These values are very different from the loring messages and will inform the communications cost–benefit calculations that form the basis of eco - strategy. Audience engagement often starts with nomic assessments. Audience research can be used building internal support within the government. to analyze those wider values and concerns in order External communications then focus on engaging to inform policy formation and communications from the sectors and demographics in the center ground the outset. that are open to persuasion while encouraging base audiences that are strongly in support. Effective communications overcome partisan divides and en- Trust is critical gage a wide range of stakeholders across the political Experience shows that the response to carbon pricing spectrum, helping to build support that goes beyond is often a reflection of wider issues of trust in govern- election cycles. ment and business, and their perceived accountabili- ty. If trust in the government is low, the public may be Base communications on robust less likely to trust government explanations of carbon research pricing policy. Research should explore issues around trust and an engagement strategy should include a Conducting research is essential for understanding range of trusted peer communicators and networks. attitudes, identifying the grounds for support and opposition, and selecting the best messages and communicators. Research techniques include surveys Communications in practice: for analyzing attitudes across the whole population, tips for successfully focus groups for understanding motivations, and stakeholder engagement to both listen to and inform communicating carbon pricing key constituencies. Testing strategies, narratives, and communication materials with target audiences be - Incorporate communications fore they are used helps to gauge reactions and avoid throughout the process generating a backlash. A communications strategy is not an add-on. It needs Be consistent to be an integral part of the design of a carbon pricing policy. Specialists should be involved from the earliest All aspects of a carbon pricing policy—including the stages, especially in key decisions like the naming of choice of pricing policy, the distribution of the reve - 10 Guide to communicating carbon pricing nues, and any exemptions—should be consistent with a deep understanding of the needs and concerns of the overall narrative and framing of communications, different constituencies. This may involve identifying especially in terms of achieving the stated objectives. trusted people from within a target audience who can Inconsistencies between claims and reality will under- speak to their own sector. For example, businesses mine public trust. are more likely to respond well to business leaders in the same industry. Civil society organizations can also Keep it simple play a key role in building public support. The expert language used in economics, finance, or climate science reports is appropriate for policy Framing carbon pricing – discussions but should be avoided in public commu- what has worked? nications, and replaced with accessible and more conventional language. Keeping the design of the The effectiveness of messages is highly specific to the carbon price itself simple will help enable communi- audience, culture, and national context within which cations too, as comprehensible and “common sense” they are used. For this reason, audience testing is mechanisms are far easier to communicate. For more essential. While being mindful of these limitations, complex mechanisms, such as emissions trading, it audience research and testing suggests that three may be more effective to focus on “what it does” than narratives should form the basis of communications: to explain “how it works”. Fairness Anticipate opposition early Research suggests the perceived fairness of a policy is Organized and well-resourced opponents can un- one of the most important factors influencing whether dermine a carbon pricing policy, especially if they people support it. Carbon pricing can be presented as are able to dominate the public framing and media a fair way to share responsibility for carbon pollution debate. Governments should use audience research and to reward the companies that pollute the least. to anticipate opposition at an early stage in the policy If the policy instrument allows preferential treatment design process, and later test the language that is to and exemptions for any one sector, or places an be used in communications to ensure it does not fuel undue burden on a particular segment of the public, opposition. the public may reject claims of fairness, undermining confidence in the policy. Engage and listen to stakeholders Balance Communication should be a two-way process that involves not only informing and persuading, but also The framing of balance implies a considered, rea- listening and inviting feedback and advice. Stakeholder sonable, and moderate position. Carbon pricing can engagement, in other words, is inseparable from the be presented as a balanced and sensible approach, design and application of communications. Consulta- encouraging businesses and people to do what is tion with stakeholders can help to design the policy, right for the environment while leaving it up to them as well as refine and test the core narratives. Listening how to do so. If revenues are used to reduce other to a wide range of stakeholders, including civil society taxes, pricing can be presented as a way to re-balance organizations and critical voices, will strengthen the the tax system by taxing pollution and encouraging policy and inform communicators about the grounds personal or business success. on which it is likely to be challenged. Shift to clean energy Use trusted messengers Many governments focus on the advantages of shifting The communication process needs to identify, nurture, to clean technologies—for the economy, environment, and support external communicators who can show air pollution, national security, and self-reliance. This Guide to communicating carbon pricing 11 narrative can illustrate how carbon pricing is assisting Expert consensus businesses and consumers to make that change. This narrative can be strengthened if revenues are spent There is no evidence to show that presenting expert on visible, clean energy initiatives. support for a pricing policy—for example, support from economists—is effective with a wider lay public, though it may be more effective with specific stake - Framing carbon pricing – holder groups, such as environmental non-govern - what has been less effective? mental organizations. In other fields, like vaccination, there are examples of failed public engagement, Messages should be tested in their specific context. where overdependence on expert opinion was coun - With that important caveat in mind, evidence suggests terproductive and increased opposition. that the following approaches are riskier: Threat of climate change Cost In some jurisdictions, climate change is considered Narratives that focus on putting a “price on carbon” to be a serious and immediate threat. In others, the and internalizing the “social costs” of fossil fuels issue is politically polarized or not well understood. perform poorly outside financial and economic au- In the latter case, it is better to lead with other more diences. From the perspective of a layperson, they immediate concerns—for example, issues of local pol- focus attention on the negative costs associated with lution and jobs. Negative threat messaging has failed carbon pricing, rather than the positive benefits. This in many contexts and the more effective narratives is true even when the narrative focuses on carbon often focus on the positive opportunities of action pricing policy as a “low-cost” method of reducing rather than the negative consequences of inaction. emissions. 12 Guide to communicating carbon pricing Introduction  Who is this Guide for? The term “carbon pricing” is not a perfect one from the perspective of public communications. Not only is The main audience for this Guide is policymakers, and “carbon” poorly associated with climate change in the communications staff working within the government public mind, language around price and cost performs sector. It contains advice for governments at all stages poorly in message testing. of policy formation—though, consistent with the mis- sion of the Partnership for Market Readiness (PMR), While there is some evidence that this language is particular attention has been paid to the circumstanc- not ideal in English-speaking jurisdictions, there is no es of lower-income countries and legislatures that research evidence that recommends an alternative have not yet adopted a carbon price. phrase to “carbon pricing” in any language. The term is used here because it is well understood by policy- makers. To engage a wider audience, communicators Why is the term “carbon may wish to test alternatives terms. pricing” used in this Guide? The term “carbon pricing” is a convenient shorthand Where does the evidence that is widely understood by economists and policy- come from? makers. By creating a cost for emitting greenhouse gases, carbon pricing creates an economic incentive The recommendations set out in the Guide are drawn for businesses and consumers to use energy more from best practice and, wherever possible, supported efficiently, shift to lower-emissions fuels and technol- by independent research. A major 2018 synthesis re - ogies, or invest in lower-emissions processes. port 2 concluded that there is “relatively little-published research on communications around this issue.” The While the focus of this Guide is on explicit forms of vast majority of this communications research has carbon pricing—emissions trading schemes and been conducted in developed English-speaking coun- carbon taxes—the communications advice it contains tries, predominantly in North America and Australia. is also relevant for related policies, such as fossil fuel subsidy reform (see World Bank report on energy The Guide has therefore drawn on supplemental subsidy reform1). evidence from 32 interviews and over 200 responses Guide to communicating carbon pricing 13 to online questionnaires from specialists in carbon changes of government. If key stakeholders and voters pricing and communications. Wherever possible we do not understand or support the policy—however have sought findings from less developed countries, intelligent and well designed—it will be vulnerable to even when we have needed to use “gray literature” attack, concessions to powerful interests, or removal (i.e. not published in the academic literature) or more altogether. In the case studies mentioned in this Guide, anecdotal material. Where appropriate, we indicate communications have invariably played a major role in that findings may only be specific to their national both the success and failure of carbon pricing policies. context. What does this Guide Why is effective communication not cover? important and how does it relate to policy? Inevitably, given the huge scope of global carbon pricing, there are limitations to what can be covered in a single guide. The following subjects are relevant to the topic Communications complement policymaking by ex- but are not fully covered in this Guide; instead, refer- plaining the reasons for carbon pricing, how it works, ences for further reading are provided. and why it is desirable. Good communications also involve policymakers listening to stakeholders and Communications for compliance and enforcement understanding their concerns, which can, in turn, lead to better and more durable policy. Communications This is an important aspect of policy implementation cannot and should not be considered a substitute for but is mostly technical and legal in content, and very effective policy, nor can they compensate for weak or specific to the national policy. incoherent policy. Specific stakeholders other than business and The role of communications in creating effective and internal government sustainable policy should not be underestimated. Multiple policymakers consulted for the Guide have There are large networks of shared interests, values, stressed that policy design directly benefits from the and people in different professional occupations that inclusion of communications expertise at the outset. can be actively engaged. In some countries, they may As well as helping to build broad-based support, good play a key role in enabling or preventing policy—for communications will also generate valuable feedback example, trades unions are a critical audience. to improve the sustainability of the policy through 14 Guide to communicating carbon pricing How to use this Guide The Guide is structured around eight steps, that communicators will be at different stages from preparation through to the delivery of a along this process. Therefore, the Guide often public-facing communications campaign. provides cross-reference links to related and relevant sections using the symbol. The Guide is designed to provide guidance on each step in the process of policy and com- Some important decisions—for example, the munications design, from conception through naming of the policy—require a careful weigh- testing to roll-out. We realize that the process ing of arguments. In these cases, we clearly is rarely this linear, that policy and communi- indicate that policymakers will need to make cations often develop in parallel ( Step 7: a strategic choice, and we offer arguments for Integrating communications with policy), and and against each choice. 8 steps to developing a carbon pricing communications campaign STEP 1 Preparing for communications design STEP 2 Identifying audiences STEP 7 STEP 3 Integrating communications with policy Research STEP 4 Designing the messages STEP 5 Explaining how carbon pricing works STEP 6 Choosing communicators STEP 8 Designing a communications campaign 10 principles for carbon pricing  communications The following core principles can guide all carbon pricing communications. They are found across all examples in this Guide and referred to in the text when applicable. Communications must explain how policies will benefit different audi- ences with respect to their real motivations, values, and concerns. These values will be very different from the cost–benefit calculations recognized VALUES-DRIVEN in economic theory. HOW PEOPLE RECEIVE INFORMATION AND FORM ATTITUDES Communications professionals and their input should be included from the outset of the policy process and in all stages of design. Communica - EARLY AND tion is an iterative process and performance of the messaging must be SUSTAINED regularly evaluated, reviewed, and revised. STEP 7: INTEGRATING COMMUNICATIONS WITH POLICY Communications should foreground clear examples of the effectiveness of the policy and provide visible evidence of how revenues are applied. The claims for what carbon pricing will achieve—especially in terms of SEEN TO WORK the economic benefits—must be realistic. GETTING REVENUE USE RIGHT 16 Guide to communicating carbon pricing All aspects of a carbon pricing policy (e.g. the choice of pricing policy, the distribution of the revenues, and any exemptions) should be consistent with the overall narrative, especially in terms of achieving the stated objectives. CONSISTENT STEP 7: INTEGRATING COMMUNICATIONS WITH POLICY GETTING REVENUE USE RIGHT The expert technical language that is appropriate for a policy discussion must be avoided in public discourse and replaced with accessible and conventional language that is more widely understood. Policy design should prioritize simple, comprehensible, and “common-sense” mecha - SIMPLE nisms that can be easily communicated. TECHNICAL CLIMATE TERMS STEP 5: EXPLAINING HOW CARBON PRICING WORKS Communications must overcome partisan divides and engage a wide range of stakeholders across the political spectrum. If it does not, the whole policy will be put at risk with every change in the balance of power BROAD-BASED between different interests. STEP 7: INTEGRATING COMMUNICATIONS WITH POLICY Trust in the messenger is often more important than the message itself. If government, economists, and policy advisers are not trusted, it is TRUSTED essential to recruit communicators who are trusted by target audiences. RECRUITING TRUSTED COMMUNICATORS All communications—including the title, policy components, and the core narrative—should be tested with target audiences before a policy is publicly announced. Inadequate testing can be a key factor in commu- TESTED nication failures. STEP 3: RESEARCH Stakeholder engagement is inseparable from communication design and application. Communication must not just be about talking at peo - ple to inform them about the policy: it should be about listening and TWO-WAY responding to them, being open to critical feedback, and maintaining an open conversation. OBTAINING FEEDBACK FROM STAKEHOLDER GROUPS There are no “magic words” that can promote a weak or unpopular policy, or persuade people who are already adamantly opposed. Indeed, grafting well-crafted language onto an unpopular policy can further NO MAGIC undermine trust and fuel opposition. WORDS The process of engagement is often more important than the language— in particular, broad consultation, support for trusted communicators, and thorough stakeholder outreach. Guide to communicating carbon pricing 17 1 PREPARATION STEP 1 Preparing for communications design 18 Guide to communicating carbon pricing ‹ At a glance: Preparing for communications design › PREPARATION Good carbon pricing communications begin early—ideally in parallel with the policymaking process. This enables governments to integrate communications with policy design ( Step 7: Integrating communications with policy) and to undertake the essential preparatory work that provides the backbone of successful communications. Governments should begin by asking basic questions, such as whether and to what extent the carbon price should be openly promoted. At the same time, being clear on the objectives of communications and the national context in which they take place enables governments to tailor their communications to their needs and circumstances. The most common objectives governments have in communicating carbon pricing include the following: yy Gaining and maintaining support for carbon pricing policy. This implies identifying and addressing audiences whose support is crucial, taking their concerns into consideration in policy development, and developing compelling narratives that speak to their values. yy Making the carbon price signal visible. A more visible carbon price can have a greater impact on consumer behavior but can also have negative implications for policy acceptance, making it important to decide early on whether to aim for this. yy Ensuring an informed debate on carbon pricing or carbon policy options. Countering misinformation and misunderstandings through informative and accessible language is particularly important when carbon pricing has become politically contentious. yy Obtaining feedback from stakeholder groups. Stakeholder feedback enables policy to be improved and messages to be tested. This requires a combination of informative and coherent language, communicated in ways that allow interactions and conversations. The main national circumstances governments should consider in preparing for communications are as follows: yy The political system and level of polarization. In politically polarized environments and where there are frequent changes of government, communications should be broad-based, speak to shared concerns, and seek to build cross-party support. yy Dependence on domestic fossil fuels. Where fossil fuel industries are a major contributor to jobs or GDP, communications should acknowledge their important role and the concerns of workers and investors, while also highlighting the need to diversify the energy economy. yy Relative concern about climate change. Where climate change is not a major concern for the populace, framing carbon pricing in terms of clean air, the energy transition, or creating green jobs may be more effective. Climate change should always be part of the discussion, but where and how it is mentioned should reflect the concerns and priorities of each different audience. Guide to communicating carbon pricing 19 Developing effective carbon pricing communications position.” —Sharlin Hemraj, Director: Environmental begins with setting out the objectives the communica- and Fuel Taxes at National Treasury, South Africa tions seek to achieve and understanding the national PREPARATION context in which they take place. This chapter outlines Ask: what objectives do how understanding these factors can inform good communications design. These questions will also be communications seek referenced in later chapters of this Guide to enable to achieve? readers to link different options and approaches to a given set of objectives and national context. The design of any communications strategy should be guided by the objectives it seeks to achieve. Clearly Incorporate communications defining these objectives at the outset helps to ensure advice from the outset that communications are matched to the needs of the communicators. While it is possible for communica- of the policy design tions strategies to integrate multiple objectives, it will often be necessary to balance and prioritize them Preparations for the design of communications on when designing communications. Clear objectives will carbon pricing should begin early, ideally in parallel also provide the basis for criteria for evaluating the with the development of the policy itself and the success of communications. consideration of how to use the revenue ( Step 7: Integrating communications with policy). Research for this Guide found that many governments gave only Define specific objectives limited thought to communications early in the policy This Guide outlines some of the most common objec- design process, leaving more detailed communications tives in communicating carbon pricing and provides considerations to the final stages of the policy design. examples of how they can be reflected in the design of There is a risk that, without the input of audience a communications strategy. This list is not exhaustive research, carbon pricing policies may stray too far and does not include, for example, communication on from the principles noted above, and fail to be simple, technical issues related to the implementation of car- coherent, relevant, or worthwhile. No amount of good bon pricing schemes, such as compliance processes communications can boost a policy that has failed to and market functioning, which is beyond the scope receive stakeholder engagement and support early in of this Guide. Objectives should also be regularly its design. re-examined to allow communications to adapt to evolving policy goals and circumstances. An effective communications strategy on carbon pricing is crucial from the beginning. Technical Gaining and maintaining support for policy advisors would benefit from a communications carbon pricing policy guide and strategy to help them with developing argu- ments and views on carbon pricing to influence key stake- One of the most frequently cited goals for developing holders. This is especially important for communication at communications on carbon pricing is helping to en- a higher level for example, engaging high-level senior poli- sure there is sufficient support for the carbon price cymakers like the ministers, deputy ministers, director so that it is adopted and remains in place. 3 While it is generals, and CEOs of big emitting companies. Whether difficult to predict future political trends, strong and you are the treasury, environment, energy, or trade and broad support for a carbon price can ensure its stabil- industry departments, you will also need to be sensitized ity and help it resist changing political winds, which is early to the issues and, by effectively communicating the key for ensuring the credibility of the long-term price benefits of carbon pricing, you will help to get buy-in from signal. Depending on the political economics at play, the departments. Effective communication will also be this may require gaining the support of the general important to help develop a coordinated government policy public, legislators, key sectors, or trade organizations. 20 Guide to communicating carbon pricing TABLE 1.1 Gaining and maintaining support: sample implications for communications design Issue Communications design See further PREPARATION Coherent and compelling narratives that help justify the Step 4: Language need for and benefits of the carbon price in the eyes of key Designing the and messages stakeholders. messages Stakeholders whose political support is needed for the carbon Strategic focus on Audiences price to be adopted and to remain in effect. different audiences Integrating The design of the policy should seek to enable easy communi- The building communications cation of its benefits to key actors and should integrate their blocks of communi- and policy concerns at an early stage. cable policy Making the carbon price signal visible >> Option 2: Minimize the visibility of the carbon price signal Decision: Policymakers will need to decide to what extent they wish to make the carbon price visible to Visible price increases may have serious implications businesses and consumers. for communications and policy acceptance. In coun- tries where key constituencies already feel financially >> Option 1: Make the carbon pricing signal visible constrained, where public opinion is strongly opposed to increased costs in energy or fuel, and especially A more visible carbon price can have a greater impact where organized opponents are mobilizing narra- on consumer behavior in certain jurisdictions, with tives around the additional costs for business and consumers and businesses often responding more consumers, drawing attention to prices may reinforce to a price hike when they are aware it is due to a opposition. carbon price.4 Many governments and civil society organizations therefore consider a visible price to Whether or not governments seek to promote the be an important objective of communicating carbon visibility of the price signal, therefore, depends great- pricing. 5 This may be particularly important for car- ly on the national context. Governments may also bon taxes where, in the absence of a cap, consumer choose to take a nuanced approach, communicating and business responses to the price determine the costs to those likely to be responsive to them—such environmental outcome. as businesses with opportunities for reducing energy use—while minimizing this approach in broader com - munications. Communications around costs might also be coupled with information on how to reduce emissions and thereby reduce costs. Guide to communicating carbon pricing 21 TABLE 1.2 Ensuring the visibility of the price signal: sample implications for communications design Issue Communications design See further PREPARATION Informative messaging that makes consumers aware that the Language carbon price exists, what products it applies to, how much it Step 4: Designing and messages equates to in real terms (e.g. per liter of fuel), and what people the messages can do to reduce their emissions. Businesses and consumers responsible for emissions, and in Strategic focus on Audiences particular those with significant emission reduction oppor- different audiences tunities. Companies selling goods into which the carbon price is embedded (e.g. fuel, electricity) may be required to provide Step 6: Choosing Communicators information on carbon price paid in a standardized format communicators as part of invoices, allowing customers to compare savings across fuels. Ensuring an informed debate on carbon pricing or carbon policy While all policymaking processes typically involve a range of actors and benefit from the availability of options credible and consistent information, an informed Whenever non-experts are involved in the discourse debate becomes particularly important when there around the design of the carbon price it is important is a public or legislative vote on adopting the carbon to ensure that this discourse is informed by clear, price, or when the issue has become politically con- accurate, and complete information. Research con- tentious. Organizations may, for example, focus their ducted for this project indicates that this is considered communications on countering misinformation and an important objective by both civil society and gov- misunderstandings regarding carbon pricing or a ernment organizations.6 given policy.7 TABLE 1.3 Ensuring an informed debate: sample implications for communications design Issue Communications Design See further Informative language that adequately and objectively de - scribes proposals for the carbon price and their justification, Language Step 4: Designing presents advantages and disadvantages, provides supporting and messages the messages evidence (e.g. modeling results and case studies from other jurisdictions) and clarifies common or likely misconceptions. Step 2: Identifying All stakeholder groups that have the ability to influence the audiences decision to adopt (or maintain) the carbon price. These may Audiences Obtaining include ministers, legislators, industry and labor groups, civil society, and the public. feedback from stakeholder groups Integrating Keeping the design of the carbon price relatively simple can The building communications help to avoid misunderstandings and confusion arising in blocks of communi- and policy public debates. cable policy 22 Guide to communicating carbon pricing Obtaining feedback from stakeholder accepted. Business and civil society organizations interviewed for this Guide place a high priority on groups engaging with policy design, while governments are PREPARATION The design of the carbon price can benefit greatly also keenly aware of its importance. 8 Feedback can be from incorporating expert knowledge and feedback obtained through a range of channels, including pre- from different stakeholder groups, which will help to sentations and workshops, bilateral communication, ensure that the policy is robust, workable, and broadly and open, public consultations. TABLE 1.4 Obtaining feedback from stakeholder groups: sample implications for communications design Issue Communications Design See further Informative language, coupled with coherent arguments Language Step 4: Designing supporting policy proposals; identification of key design ques- and messages the messages tions for stakeholder feedback. Policy experts and those with experience in implementing Step 2: Identifying Audiences analogous policies; targeted emitters (including industry and audiences consumer bodies); likely implementing entities. Integrating Early and regular stakeholder engagement is important: it Step 7: Integrat- communications enables key actors to provide inputs throughout the various ing communications and policy stages of policy design. with policy Integrate and prioritize >> Option 1: Proactive communication of carbon pricing policy objectives Proactive communication can allow governments to Most jurisdictions will have multiple objectives for set the tone of the debate and control the messaging. communicating carbon pricing. While most of the ob - Where the visibility of the carbon price is important jectives discussed above are broadly compatible, there for its effectiveness, proactive communication is may be instances where political decisions will have to likely to be necessary. be made to prioritize the most important objectives. For instance, in jurisdictions where the adoption of the >> Option 2: Communicating carbon pricing policy carbon price is contentious, the government may see less proactively the visibility of the price signal as counterproductive in regard to obtaining support for it. Communication may also carry risks. It may draw critical attention to a policy that could otherwise Decision: Before preparing communications mate - receive limited attention. Communication will create rials policymakers should decide to what extent they a “framing” that will define how a carbon pricing wish to proactively communicate on carbon pricing at all. policy is perceived. And if trust in the government is Some governments choose to actively communicate low, the public may be less likely to trust government carbon pricing and promote its effectiveness. Other explanations of any kind. A government may prefer to governments simply build carbon prices into budgets limit its public outreach and limit communication to or broader policies, and do not give them any more key stakeholders ( Integrating communications, public attention than they would any other tax or policymaking, and stakeholder engagement). fiscal incentive. Guide to communicating carbon pricing 23 This decision will depend on the (likely) public profile impact a wide range of communications decisions, of the carbon price. While in some jurisdictions car- including the audiences targeted, the design of mes- bon prices have been adopted quietly and without sages, and the communicators chosen. PREPARATION much public debate, in others the adoption of the carbon price has become a “hot topic” that has gener- Early consideration of these factors will be particular- ated extensive debate across the political spectrum. ly important in cases where the national context is not Factors to consider include: immediately obvious—for instance, where research on public attitudes is needed. This section, therefore, i. whether the carbon price will require high-pro - identifies the major national circumstances that have file independent legislation or a public vote, the greatest influence on communications design or if it is integrated into broader legislation or (these will be referred back to in subsequent sections adopted by decree; of the Guide that discuss the specific elements of communications design). ii. whether there is likely to be significant opposi- tion to the carbon price; Political system and level iii. whether carbon pricing is associated with a of polarization specific political party; and iv. the relevance of public opinion on policymaking. In countries with political systems that result in fre - quent changes of government, an effective long-term Deciding not to proactively communicate to the public price signal will need to survive changes in economic and externally does not imply that no communications and political circumstances. Communications should strategy is required. Governments should always be be broad-based and a consensus is therefore needed ready to respond to external criticism or commentary, across stakeholders regarding the carbon price. This and having a clear and coherent communications is particularly challenging—but also particularly im- strategy can help ensure that this is done in an effec- portant—for countries with a high degree of political tive and coordinated way. Moreover, consultations polarization. will be required within government and with specific affected parties. The carbon tax in British Columbia and the emissions trading scheme (ETS) in California have both secured strong cross-party support and have been strength - Identify the national ened despite changes in the ruling party. This can be circumstances relevant to contrasted with national-level climate policies in both the United States and Australia, where changes in communicating carbon pricing the ruling party have in the past led to major climate policy reversals. Having a clear picture of the relevant national context can help inform the development of communications approaches that are adapted to local needs. This will 24 Guide to communicating carbon pricing TABLE 1.5 Political system and level of polarization: sample implications for communications design Issue Communications Design See further PREPARATION Where political polarization is evident or there are frequent changes of government, seek language that speaks across Language Step 4: Designing political boundaries on shared concerns, identity, and vision and messages the messages for the country. Avoid messaging that speaks exclusively to one political ideology. Appealing to open audiences that express concern but not Audiences strong commitment to climate change is often the key to win - ning public support in polarized environments. Integrating To maintain support over time, ensure that the carbon price The building communications does what it says it will do (reduce emissions, grow a low-car- blocks of communi- and policy bon economy, etc.) cable policy A CLOSER LOOK 1.2 How political polarization is reflected in audience attitudes A CLOSER LOOK How political polarization is reflected in audience attitudes In recent years, public debates in democratic systems have become increasingly polarized, with populist movements emerging. At the same time, trust in experts, official information sources, and traditional media has been falling. In the case of climate change, political values and worldviews are, by a large margin, the most signif- icant predictor of public attitudes. A 2016 synthesis of 171 studies, across 56 countries, found that political orientation and values were the dominant determinants of people’s level of concern, with the greatest concern expressed by people on the left of the political spectrum, and the greatest skepticism expressed by those on the right.9 There has been far less research into attitudes toward carbon pricing, though existing research has consistently found that attitudes toward carbon pricing closely correlate with attitudes toward climate change. Bear in mind that opposition can be more nuanced, with distinct oppositional communities across the political spectrum. For these reasons, research should always explore whether political identity is a factor in the forma- tion of attitudes ( Segmenting audiences by attitudes and values). The significance of political polarization reinforces the principle that good communications design should ensure that the arguments of pricing are shared across the political spectrum and capable of evolving with changing circumstances. There are a number of strategies that can be employed in promoting carbon pricing in polarized environments, discussed in detail in the section ( How people receive information and form attitudes). Guide to communicating carbon pricing 25 Dependence on domestic fossil fuels pricing has been labelled by opponents as a threat to jobs, growth, and energy security. In jurisdictions where the production, processing, and PREPARATION consumption of fossil fuels is a major contributor to In these contexts, it becomes highly relevant to factor employment and GDP, or where domestic fossil fuels this into communications design at an early stage of represent a large portion of consumption, carbon the policy design process. TABLE 1.6 Dependence on domestic fossil fuels: sample implications for communications design Issue Communications Design See further Use language that respects the role of fossil fuels in the country but warns of the vulnerability from overdependence Language Step 4: Designing on a single source of energy, e.g. presenting carbon pricing and messages the messages as a way to diversify the energy economy, or enable greater self-reliance and energy independence. Those directly affected by the carbon price—in particular, those working in the energy industry, or populations in regions Step 2: Identifying Audiences where fossil fuel energy is a major part of the economy. These audiences audiences could potentially become opponents and may need special attention. Integrating Integrating Consulting affected groups and involving them in the policy is communications, communications important. The policy should also consider their concerns—for policymaking and policy instance, through re-investing revenues in job training. and stakeholder engagement Relative concern about climate action toward addressing climate change caused by change and other environmental human activity varies significantly between jurisdic- and social problems tions. Even where concern is low, it might be possible to promote the carbon price in other ways that foster Communications should be values-driven and wider acceptance. This may include promoting re - responding to people’s concerns. These con- duced local air pollution or supporting green industry cerns should be identified through a two-way ( Case study: Costa Rica – focusing on vehicle conversation and testing. The extent to which the pop - pollution), ( Communicating about climate ulation believes in, is concerned about, and supports change in carbon pricing narratives). 26 Guide to communicating carbon pricing TABLE 1.7 Awareness of and concern regarding climate change: sample implications for communications design PREPARATION Issue Communications Design See further Where climate change is a major concern, framing carbon pricing as an effective policy to reduce emissions is more likely Step 3: Research Language to resonate. Where air quality is a serious concern, carbon and messages pricing could be presented as a measure to “clean the air we Step 4: Designing share”, focusing on health outcomes within climate change the messages messaging. When focusing on climate, identify which audiences are more aware of and concerned about climate change, to facilitate tai- lored messages. When focusing on other issues, identify those Step 2: Identifying Audiences directly affected by the issue at hand (e.g. for air pollution, resi- audiences dents of big cities or industrial areas). Concern about air quality is particularly high among the most vulnerable groups (young children and the elderly) and the people who care for them. In the case of air quality, concentrate on the key sources of Communicating Integrating pollution—especially transport and coal-fired power genera - about climate communications tion—and consider addressing other air pollutants within the change in carbon and policy framework of the policy. pricing narratives Guide to communicating carbon pricing 27 2 IDENTIFYING AUDIENCES STEP 2 Identifying audiences 28 Guide to communicating carbon pricing ‹ At a glance: Identifying audiences › Effective communications require a clear definition of the target audiences. This chapter identifies three main audiences: internal government policymakers, priority stakeholders, and the general public. The chapter differentiates between a meta-narrative for wide audiences, which explains carbon IDENTIFYING AUDIENCES pricing in terms of shared values and identity, and sub-narratives which are constructed around the specific values and concerns of the target audience. In the development of a communications strategy, audiences should be separated into different segments according to their attitudes and demographics. The Guide recommends four core segments: yy Base audiences that support carbon pricing or are supportive of strong government action on the issues. yy Open audiences that have intermediate views but are still open-minded. yy Opposing audiences that express opposition to carbon pricing on principle. yy Disengaged audiences that show no strong opinion or motivations around climate change or carbon pricing. The Guide’s strategic recommendation is to prioritize directing attention to the open demographics, to encourage the base, and to avoid aggravating the opposing groups. In regard to opposing groups, the Guide recommends adopting different strategies for those who favor a policy response to climate change but oppose carbon pricing as a policy, and for those who are fundamentally opposed to all responses to climate change. In both cases, the Guide recommends listening carefully to opponents and understanding the basis of their opposition, recognizing that it often lies in wider issues of trust. Any engagement starts with the question: “who am cations that can address, satisfy, or appease every I talking to?” This is then followed by key questions audience. For both these reasons, communicators that will shape the communications for this audience, need to strategically define their audiences and tailor including what are their concerns, their values, and the messages to these audiences. their attitudes toward government and business? What are their attitudes toward, and what is their understanding of, climate change? This ensures that The three main categories the communications are accepted as values-driven, of audiences trustworthy, and broad-based. Communicators should focus on three distinct In many cases governments may have limited capacity audience categories: internal government, priority and will need to prioritize which audiences to target. stakeholders, and the general public. Moreover, there are no magic words—no communi- Guide to communicating carbon pricing 29 TABLE 2.1 Communication approaches for distinct audience categories Audience category Approaches Policy narratives: Internal briefings that explain pric- Internal groups within government and policy forma - ing in the language of policymakers, relating it to wider tion, including politicians, legislators, senior bureau- and previous policies, government processes, and the crats, and policy officers. broader political narrative. Priority stakeholder groups, for example, compa - Sub-narratives: in which communications are care - nies and industry groups, trade unions, civil society fully constructed to address the concerns and values IDENTIFYING AUDIENCES groups, journalists, academics, and think tanks. of each priority audience. Meta-narratives: in which the policy is explained in General public, including voters, non-defined stake - a way that effectively communicates concerns and holders, and interest groups, with a wide range of values shared across the public—for example, around overlapping identifications including faith, occupation, values of national identity (such as leadership) or gender, age, politics, and ethnicity. concerns (such as local pollution). The answers to following questions will define the those supporting or opposing the policy have a key focus for communications within these three demographic profile (around age, gender, pol- categories: itics, ethnicity) and are there civil society net- works that have a strong engagement or trust Internal audiences within those demographics? ( Segmenting audiences by attitudes and values) 1. What is the level of internal support within the government and across the relevant min- Communicators will be able to answer many of these istries/departments? What are their concerns? questions from previous experience. However, they Which ministries or politicians need to be most should supplement their initial judgment with wider involved? Where is opposition likely to emerge? research and stakeholder engagement, especially 2. Is pricing supported across the political spec- regarding public attitudes in relation to unfamiliar trum? Do any politically influential parties policy measures, which are often hard to predict. oppose pricing? Strategic decisions should always be supported by clear evidence. ( Step 3: Research), ( Obtaining Priority stakeholder groups feedback from stakeholder groups) 3. Which organized industry/business/labor groups support the carbon price? Which oppose it? Segmenting audiences Which of the supporting and opposing groups hold the most influence in the political process by attitudes and values or media, or have the strongest public support? One way to target different audiences is to use a 4. Which civil society organizations support the “segmentation” approach which seeks to define carbon pricing policy? Which oppose it? Which clusters of demographic qualities and attitudes that of the supporting and opposing groups have define attitudes to climate change and carbon pricing. the strongest public support and trust? For example, differences in age, gender, education, and cultural worldviews predict a range of beliefs General public about specific topics (like climate change) or policy 5. What are the public attitudes to carbon pricing approaches (like taxation), and may offer useful and the different arguments in its favor? Do criteria for segmenting an audience. The popular “six 30 Guide to communicating carbon pricing Americas” segmentation model divides the U.S. public 2. Open: Audiences that have intermediate views into six categories based on their views about climate and are still open-minded. They may be gen- change.10 erally supportive of action around climate change and shifting to renewables, and may re - Although segmentation is most relevant to public spond positively to other narratives ( Step 4: engagement, it will also be applicable to internal and Designing the messages). However, they are stakeholder engagement, predicting how different often not strongly engaged with carbon pric- individuals within each audience will respond to ing as a policy response. These audiences are communications. There is detailed guidance on therefore the most open to forming their posi- segmenting stakeholder audiences in the 2018 World tion based on well-communicated arguments, IDENTIFYING AUDIENCES Bank publication Designing Communication Campaigns whether for or against carbon pricing. They are for Energy Subsidy Reform.11 also less likely than base or opposed audiences to be committed to a political ideology and are However, simply dividing people into groups based often the critical constituency to win over in on their attitudes is not necessarily the most useful contested elections. way to start designing a communication strategy. It is more important to understand why they differ in their 3. Opposed: Audiences that express principled views, and which underlying factors (values, world- opposition to carbon pricing, often associated views, and ideology) predict these differences. A good with ideological skepticism about the underly- segmentation exercise will therefore also identify ing policy approach or climate change itself, or clusters around common values and a social identity those that stand to incur economic losses due so that segments can be grounded in differences that to the carbon price. These audiences are likely are “predictive” rather than just “descriptive”.12 to hold this view regardless of the content of messaging; however, their opposition can shift These deeper responses offer important signposts to under moderation or qualification following the sort of narrative that might appeal to the different effective engagement. segments, in terms of the shared values they embody. 4. Disengaged: Audiences that show no strong It is critical to test any piece of communications with opinion or motivations around climate change a given target audience before drawing any strong or carbon pricing. Generally speaking, these conclusions. audiences are a low priority but they may become more motivated around other issues Basic segmentation: the four main and are at risk of becoming mobilized through categories organized opposition campaigns. When developing a communications strategy, it can be useful to segment audiences into four categories Strategic focus on different according to their commitment to the expected re - audiences sults of the carbon pricing policy: Individual national circumstances will require very 1. Base: Audiences that support carbon pricing or different strategies for audience engagement, which are supportive of strong government action on cannot be fully anticipated in this Guide. Consultation the issues it addresses, or those who stand to and best practice in climate change communications benefit from the carbon price. These audiences suggest adopting the following strategy: are likely to hold this view regardless of the content of the messages; however, their sup - Build internal support port can be intensified and made more visible if they are effectively engaged. First, start with building internal support within gov- ernment and across the political spectrum, through Guide to communicating carbon pricing 31 internal briefings. Speak with each department or communicators within these audiences ( Recruit- ministry in a language that speaks to their remit: for ing trusted communicators). This approach may example, one could foreground the revenue opportu- be especially worthwhile with stakeholder audiences nities to the department of finance, building an inter- when the opposition is relatively weak and dispersed national profile to the department for foreign affairs, and support is spread across multiple constituencies jobs and competitiveness and new technologies to the and sectors. For example, California has a diversified department of business, and environmental benefits economy, with a strong renewable technology sector to the department of environment. and communications have sought to mobilize this base support from progressive business. Focus persuasion on the open audiences IDENTIFYING AUDIENCES Manage opposition from opposed audiences Concentrate resources on building support with open audiences. This strategy requires targeted messaging Strong opponents of carbon pricing are unlikely to be building on shared values and working with networks persuaded by communications unless, over the lon- and influential communicators that have strong ger term, they can be persuaded to change their view support. These communications should be carefully through evidence of a successful policy. The primary tested to ensure that they do not weaken support strategy should, therefore, be to manage opposition, from the base or increase opposition from the op- show that opponents’ concerns have been heard and posed categories. There is some evidence that build- addressed as far as is possible without weakening the ing support among open audiences is most important coherence and effectiveness of the policy. when attitudes are strongly polarized along political lines and where open audiences provide the basis for creating electoral and cross-party legitimacy.13 Strategies for communicating Encourage support from base audiences with opponents Provide the audiences that are already supportive of Table 2.2 suggests that ways of managing opposition the policy with detailed briefings and materials, en- will depend on the answers to the questions set out abling them to be visible and to speak with a combined below, and will vary with every situation. voice. Work closely with networks and influential TABLE 2.2 Questions for identifying opposition and strategic communications responses Question for identifying opposition Strategic communications response Engage directly with the institutions or sectors Which specific sectors or institutions are aligned with (through representative networks). Show that their opposition? concerns have been heard. Build communications around the values and identity Do people opposing pricing have definable demo - of these demographics. In particular, avoid associating graphic qualities: for example, age, gender, values, the policy too strongly with a different or opposing location, or—especially—political values? demographic. What aspects of the pricing policy are the main source Design (and test) communications to address the of opposition? Is it the underlying approach of market main concerns, though be careful not to increase their mechanisms, the focus on climate change, the level of profile. the carbon price, or the perceived financial impacts? 32 Guide to communicating carbon pricing Do opponents support the principle of action on These critics, especially from civil society, can be an climate change but disagree with carbon pricing as a important source of external feedback that can ad- policy instrument or the way in which the instrument vise, steer, or block bad policy. They should be actively is designed? engaged. Provide arguments and information that directly counter the opponent’s arguments. For example, if opponents say that it is too expensive or ineffective, Is a lack of accurate information leading critics to provide information materials and data to show that it misunderstand the policy or its results? is affordable and effective. A detailed set of counter-ar- IDENTIFYING AUDIENCES guments to these assertions is provided in Appendix E ( Appendix E: Managing counter-arguments). Is a lack of trust the key factor in opposition and where If the lack of trust is a major cause of opposition, does the greatest distrust lie? Does it relate to individ- building trust needs to be the main focus of a com - ual advocates (such as high-profile politicians), insti- munications strategy: using trusted messengers and tutions (distrust of government, finance, or business) networks, investing in stakeholder engagement, and or political ideology (distrust of free-market liberalism, designing a coherent and effective policy. environmentalism, or government interference)? The questions set out in table 2.2 seek to differentiate mate change are likely to have a far more destructive between two categories of opposition: groups that attitude to the carbon pricing policy. They may seek support the principle of action on climate change but to lower the carbon price or seek specific exemptions disagree with carbon pricing as a policy instrument or rebates that will reduce its effectiveness as an or the way in which the instrument is designed, and economic instrument. Policymakers may wish to groups that are indifferent to, or actively oppose, accede to these demands in the interests of reducing action on climate change in any form. The former opposition and building support for carbon pricing. group can be an important source of external feed- However, when they do so they need to consider back that can advise, steer, or block bad policy. For the wider implications of concessions on the com- example, civil society critics often raise concerns munication of carbon pricing, especially for the open about the impacts of carbon pricing on lower-income audiences. Concessions will conflict with many of the groups. Recognizing these concerns about regressive principles of good communications ( 10 principles impacts may provide useful guidance for a more so - of good carbon pricing communications), reducing cially equitable application of revenues that could also coherence, shared impacts, perceived effectiveness, build broad-based support. For example, in Sweden, and, most critically, trust. What is more, such conces- each time there is a change made to the carbon tax sions can add excessive bureaucratic complexity, and the government seeks to identify who will be most undermine arguments that pricing is a simple and affected by the changes and pays special attention to flexible mechanism. This was evidenced in the draft communicating with and addressing the concern of text for the U.S. 2009 Waxman Markey-Act, in which these groups.14 In California, 25 percent of ETS revenue concessions to the proposed ETS ballooned to over expenditure has been prioritized for lower-income 1,000 pages. The act lost support from politically open groups and this has become a major component of constituencies and was widely criticized by environ - the public marketing and advocacy for the policy.15 mental organizations (who should have been able to provide secure base support) for failing to address the Critical stakeholders who are protecting commercial key issues. In the end, the concessions failed to please interests or who fundamentally oppose action on cli- advocates or appease opponents.16 Guide to communicating carbon pricing 33 The conclusions for engaging with opponents there- 3. Address concerns in the design of the policy fore are the following: and through the application of revenue, if it is possible to do so without significantly weaken- 1. Anticipate stakeholder concerns early in the ing the effectiveness of the instrument. design process and focus strategically on buil- ding engagement and messaging that seeks 4. Through testing, identify language that does —as a priority—to speak across different not exacerbate opposition and that, ideally, interest groups. As noted in (   Case study: helps to reduce it. This should be a key criterion Opposition to Australia’s carbon pricing in the selection of core narratives. mechanism), it cannot be assumed that a con- 5. Deliver messages through a range of commu- IDENTIFYING AUDIENCES sensus is permanent and so one should be pre - nicators, networks, and media, ensuring that pared for new concerns to emerge. the communicators include sources that are 2. Fully understand the grounds for opposition trusted by opponents. through exploratory qualitative research and For further information, go to ( Appendix E: Man- stakeholder engagement. aging counter-arguments). CASE STUDY 2.1 Opposition to Australia’s carbon pricing mechanism CASE STUDY Opposition to Australia’s carbon pricing mechanism Originally, all major parties in Australia had supported the principle of a national carbon pricing policy. Communications became strategically important when Australia’s Liberal Party dropped its support in December 2009. This started a campaign of strong opposition to a carbon price that continued when the next administration proposed an ETS in 2011. These challenges to the ETS subsequently became an important factor in the 2013 election and ultimately led to the repeal of the carbon pricing mechanism (CPM). The Australian experience provides important lessons for other countries. Firstly, the importance of anticipating and being prepared for opposition. The early opposition to the carbon price allowed opponents to seize control of the narrative. Furthermore, policymakers had expected a policy debate about the effectiveness of carbon pricing for countering climate change and had not anticipated the way that the issue became a proxy for wider issues of trust, elitism, and legitimacy. Secondly, the resulting policy was hard to communicate in simple terms and this made it difficult to counter the opposition narrative. The policy was a hybrid mechanism. During the first two years of implementation (the ‘fixed price period’), prices were set by the government and it resembled a tax. Thereafter, it became a fully-fledged ETS (the ‘flexible price period’) with prices set by the market. Opponents created a far simpler and more compelling narrative: that it was a “tax on everything”.17 Proponents then faced an uphill struggle to defend the policy. As noted above, additional informa- tion can be counterproductive when sources are distrusted. Explanations and testimonies from 34 Guide to communicating carbon pricing economics experts that the policy was technically not a “tax” only reinforced the populist opposition and repeated the framing that was already controlled by opponents. Although government commu- nicators avoided the word “tax”, the majority of newspaper articles referred to it only as a “tax”.18,19 This labelling helped reinforce a perception that the policy was aimed at individual consumers rather than large companies. Unsubstantiated and provocative claims were made by proponents, for example, that a leg of roast lamb would cost a family over a hundred dollars. 20 The oppositional campaign also focused on IDENTIFYING AUDIENCES campaigning around electricity prices which were increasing at that time, largely due to the cost of extra investments in the ageing electricity distribution infrastructure—the poles and wires21 —but this technical detail was difficult to communicate and was frequently overlooked by the media. This unfortunate coincidence was therefore blamed on carbon pricing. Tom Skladzien, National Economic and Industry Adviser to the Australian Manufacturers Workers’ Union, who helped design the CPM when he was a former Senior Adviser to the then Climate Change Minister Greg Combet, offers two pieces of advice for other governments: 1. “Do everything possible not to make the pricing policy a political issue of division between the major political parties. 2. If it does become a fight, don’t overcomplicate the messaging. Focus on honest and simple mes- saging that sticks to the basics and say: ‘we are just making the polluters pay, and we are putting a fair price on the pollution that they produce’.” This second point is reiterated by John Connor, former CEO of The Climate Institute (TCI) which helped coordinate NGO, union and civil society support for the policy: “to keep the public engaged, carbon pricing needs to be understandable. People say ‘I don’t mind paying a bit more for it, but I want to know what we are getting for it.’ When the outcomes were things like renewable energy, which is more tangible to people than a carbon price, support always increased”. One of Connor’s critiques of the government’s CPM communications was that a household support package for the carbon price failed to mention the pollution outcomes or the wider benefits of an energy transition. Guide to communicating carbon pricing 35 STEP 3 Research 3 RESEARCH 36 Guide to communicating carbon pricing ‹ At a glance: Research › Communications should be built upon a detailed understanding of the attitudes, values, and concerns of target audiences. There are two primary forms of communications research: quantitative (polls and surveys) and qualitative (interviews and focus groups). The former involves large sample sizes that can measure attitudes across populations and define the attitude segments outlined ( Step 2: Identifying audiences). The latter allows research to ask probing questions about why people hold the views they do. Research can be conducted in two distinct phases: 1. an exploratory phase that defines the different attitudinal segments: their values, their con- RESEARCH cerns, and who they trust; and 2. a test phase that measures the effectiveness of different language, narratives, and commu- nication materials. The Guide notes that where communications failures have occurred, the communications involved were invariably untested before release. The Guide strongly recom- mends that all communications be tested, even if only on a small scale. What research can achieve deployed separately or in combination, and each has its own strengths and weaknesses. Research is a tool. It cannot find infallible messages (i.e. there are no magic words) but it can help to focus Quantitative research presents standard questions communications. It can test different options and help with a limited range of response options. Polls and communicators to make the final choices on which surveys are examples of quantitative research tools: language and narratives to use. As a fundamental they can reach a large sample and are well suited for principle, all communications should be tested. measuring opinions across a group or population, and for measuring changes over time. Most important of all, research can identify prob - lematic language and the narratives that are least Qualitative research asks open-ended questions, effective, or that could polarize opinions and fuel op - allowing participants to speak in their own words position. Historically, the carbon pricing policies that and from their subjective experience. Focus groups have faced the greatest problems have used untested are a classic qualitative methodology that can build language that has fueled opposition. a deeper understanding of people’s attitudes and, especially, why they hold those views. Communications research A detailed technical description of these methodol- methods ogies, their pros and cons, and the practical process for applying them in pricing communications, is There are two basic approaches to communications given in ( Appendix B: Explaining research research: qualitative and quantitative. They can be methodologies). Guide to communicating carbon pricing 37 A CLOSER LOOK 3.1 The role of modeling in communications A CLOSER LOOK The role of modeling in communications Economic research and modeling can assess the implications of alternative pricing designs on emis- sions, and social and economic well-being. At the same time, modeling can provide an evidence base to bolster the messages the government uses to generate support for the carbon price. In particular, modeling produces data that gives authority to the claims made by advocates for pric- ing. For example, a common narrative regarding carbon pricing is that it can create jobs in new and growing sectors, such as clean energy. Modeling can bolster this narrative by providing an estimate of the number of new jobs that will be created or clean energy capacity that will be installed: RESEARCH A carbon price will help create 12,000 new jobs in clean energy.” Or A carbon price will see the amount of clean energy quadruple over the next 10 years.” Economic and other policy-focused research can also arm communicators with information to counter some of the arguments made against carbon pricing. For example, data from modeling can challenge arguments that carbon pricing will see a huge increase in the price of electricity or petrol, that such prices will disproportionately affect the poorest, or that pricing will not be effective in reducing emis- sions ( Dealing with counter-attacks). Economic modeling results were used to communicate the relatively limited impacts of the Australian carbon price on households, 22 and research showing that fossil fuel subsidies are regressive and do not reach the poorest has been crucial in building public support for subsidy reforms in various countries. 23 Research data from modeling needs to be applied with caution. Models will only be accepted if the communicators and economic experts who inform them are trusted, respected, and regarded as im- partial. As noted later in the Guide ( Technical economic terms), people are frequently skeptical of economists and models. 24 Applying research to the design and testing of pricing communications overlap, each combining elements of exploration and Research is required for two distinct stages of testing. Communicators working with limited time communications design: exploration and testing. Al- and resources may wish to combine them or spread though presented as distinct, these stages are likely to them across several stages of policy development. 38 Guide to communicating carbon pricing Exploratory phase thinking along similar lines and will identify the weak points in terms of public concerns and trust. The exploratory phase: Quantitative research can inform segmentation across yy identifies the composition of different audience a larger, more representative sample and the distribu- segments, especially around the categories of tion of attitudes and trust across a population. Qual- base, open, and opposed; itative research, such as focus groups, is especially yy defines the values and identity of target well suited to this exploratory phase. Open-ended audiences and the potential content for audi- questions can allow participants to suggest preferred ence-specific narratives; and language, enabling a deeper analysis of attitudes and yy identifies the parameters of trust, the overall motivations. levels of trust for policy communicators, and The exploratory questions set out in table 3.1 are the most trusted communicators and repre - designed for qualitative research (interviews or focus sentative networks for each audience. groups) and can elicit the core material that can be The exploratory phase should clearly signal the used to design a narrative. These questions form potential boundaries around trust. The exploratory part of Narrative Workshop qualitative research RESEARCH phase will also identify the possible basis for oppo - model, developed by Climate Outreach over the past sition: it is sensible to assume that opponents will be decade. 25 TABLE 3.1 Exploratory questions for narrative design Question for identifying opposition Strategic communications response Values and identity Observe closely the words people use in their own lan - yy Are there qualities and values that make you guage and incorporate these into the narrative design. proud of your nation (meta-narrative) or your group (sub-narrative)? Typical framings might include fairness, honesty, ambition, hard work, community, and independence. yy If you were to describe what makes you special Any of those would provide useful input for communi- and different from other nations/groups in your cation, and—to some extent—policy design. own words, what would you say? Main salient concerns Peoples’ front-of-mind concerns will help to both iden - yy What are your key concerns? tify the benefits that pricing needs to provide and the grounds on which it might be opposed. yy Topics might include employment, law and order, national security, national standing in the region/ Open-ended questions will identify the degree to world, social inequality, corruption, environmen - which climate change or any other related issue is a tal degradation, pollution, climate change, and strong salient concern. extreme weather impacts. Guide to communicating carbon pricing 39 Change and anticipation of the future These questions can help identify different ways to frame carbon pricing: for example, if people welcome yy How have things changed in your lives over the change and are optimistic about the future, carbon past generation? Have these changes been good pricing can be presented as new, modern, and aspira- or bad? tional. If people feel that change has been damaging and are pessimistic about the future, carbon pricing yy Are you optimistic or pessimistic about the future? can be presented in a form that validates and restores traditional values. Carbon pricing could also be incorporated into a larger national narrative of progressive change. For example, carbon pricing in Costa Rica could be communicated as being part of a national journey to become the first carbon-neutral country in the world. Attitudes and responses to climate change Open-ended, unprompted questions about climate yy What is climate change and who is causing it? change will indicate levels of awareness and attribu- RESEARCH tion of responsibility. yy Are you concerned or unconcerned about climate change? Is it real and immediate or uncertain and They will also show to what extent climate change in the future? should be highlighted as a justification for carbon pric- yy Has your country had recent extreme weather ing and whether people understand the connection impacts, and, if so, to what extent is that caused between climate change and fossil fuels. by climate change? Attitudes toward renewable energy and energy transition Observe the prominence given to the shift to clean yy What do you think about renewable energy? energy, which will determine whether it should be the yy What are the benefits and problems of moving to leading narrative or a key component of revenue use. more renewables? Identify whether people see the shift to renewables as yy Do you think we should move from old polluting important and relevant, or distant and in the future. fuels to modern clean energy... and, if so, when? yy Should we be investing more in renewables? Trust Identify the well trusted communicators or institutions that could be recruited to advocate carbon pricing. yy Who do you trust to give you honest information? Identify the primary qualification for trust—especially yy Why do you trust them? around competency, integrity, and authenticity. yy Who do you trust on economic and environmental policy? Determine the extent to which government or business arguments will be accepted and, specifically, which yy Do you trust government, media, business (large, parts of government and business are the most trust- small, carbon-intensive), or environmental NGOs ed sources ( Recruiting trusted communicators). to tell the truth? Also, identify possible areas of distrust that could be exploited by opponents. 40 Guide to communicating carbon pricing The exploratory stage can inform the design, There is value in both a quantitative and qualitative content, and naming of the policy—as discussed in approach to testing. Quantitative testing is most use - detail in the following chapters. As the policy design ful for testing narratives with a larger sample that can continues, communicators should use the findings of be representative of the entire population. Typically, the exploratory stage to develop trial narratives and this will take the form of a survey, in which partici - communications materials. They should then test pants are presented with narratives or messages these with priority audiences. and invited to give their responses on a graduated scale (for example, strongly agree, somewhat agree, Testing neither agree nor disagree, somewhat disagree, or strongly disagree). A range of narratives should be It is a central principle of communications that all tested ( Step 4: Designing the messages) and the messages and materials must be tested with target results compared. audiences during their design—and especially before release. Testing can confirm the effectiveness of the Qualitative testing is better suited to the evalua - communications strategy and can justify a larger tion of communications materials, especially images budget. Testing can also help in choosing between and video. Full-scale testing is expensive and can be different approaches and types of language for dif- time-consuming. It may be hard to justify within tight RESEARCH ferent audiences. budgets and timelines. However, communicators must always consider some form of testing, even if Most importantly, testing is the means of identifying this is a simple online survey or the recruitment of an ineffective messaging. Weeding out weak language ad hoc citizens panel. It is important that materials helps achieve the primary objective of generating are not tested with work colleagues, social peers, or strong, simple, coherent messaging. At worst, friends as they are unlikely to be representative, un - ineffective messaging can seriously undermine an biased, or critical. engagement campaign and fuel opposition. The greatest mistakes in climate change and carbon pricing communication have invariably occurred be - cause materials and messaging were not tested with a representative audience—typically because there was insufficient budget or time. 26 Guide to communicating carbon pricing 41 STEP 4 Designing 4 the messages DESIGNING MESSAGES 42 Guide to communicating carbon pricing ‹ At a glance: Designing the messages › Effective communications must respect and follow the complex cognitive psychology that guides attitude formation. The existing research shows that people react poorly to conventional carbon pricing communications focused on cost and respond best to positive narratives that speak to their worldview and values, and that are transmitted through trusted peers. Communicators have a choice between two primary strategies: one that presents carbon pricing as an effective solution to the problem of climate change, and one that focuses on the wider benefits from reduced fossil fuel use (such as reduced pollution), energy transition, or the application of revenues. Drawing on international research, especially in Canada, 27 this Guide recommends three core narratives: yy Fairness: 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. yy Common-sense: a balanced and flexible approach that unleashes the creativity of business. yy Shifting to clean energy: modernizing the energy sector, and encouraging new, clean energy. In particular, the Guide recommends that communicators foreground the way that revenues are used and the benefits they generate. For this reason decisions around revenue use will be critical for how DESIGNING MESSAGES the policy is received. By contrast, language around cost, technical economics jargon, and technical language should be avoided. There are mixed views about the use of the word “tax” and in ( Labeling a carbon tax) communicators are presented with arguments for and against using the “t-word”. contain frame-words that operate as codes and sig- How people receive information nal established meanings. and form attitudes Cues: Cues are signals concerning attitudes that are received from trusted social peers about the appro - Research on optimizing environmental communica- priate attitude for people with their shared social tions across different audiences and cultures demon - identity. strates that people rarely reach decisions through a rational evaluation of evidence and costs. 28 Instead, Heuristics: Heuristics are innate cognitive shortcuts, people tend to form rapid pre-assumptions (which reinforced by personal experience, that enable people then become reinforced by later evidence) on the to rapidly process and prioritize information. Heuris- basis of the following factors: tics are sometimes understood as “cognitive bias”. 29 Narratives: Narratives are structured stories con- These terms are used throughout this chapter and taining distinct actors with clear motivations that additional reading on this topic is provided in (  Ap - embody their life experience and values. Narratives pendix A: The social science of message design). Guide to communicating carbon pricing 43 The psychological obstacles and falls when it is presented in language around costs ( Language around cost). Research in Canada has to communications regarding also found that people’s willingness to pay a carbon short-term costs tax was directly related to people’s perception of time. Communications around climate change often argue Two-thirds of people who saw climate change as a that certain short-term costs are needed in order to problem here and now were willing to pay, while only mitigate against far larger, but less certain, long-term one-third of people who believed it to be a distant costs. This is, for example, the core economic argu- issue were willing to pay. 34 ment in the Stern Review on the Economics of Climate Change. 30 For all of the reasons stated above, communicators need to be cautious when applying standard carbon This argument has been converted into a standard pricing narratives, and should not assume that they formula containing most government narratives sup - will be effective. porting carbon pricing. The majority of government respondents surveyed for this Guide also identified this as the priority narrative: Communicating about climate change in carbon pricing yy climate change is a serious threat with major long-term costs; narratives yy the government is committed to international Decision: Carbon pricing is usually adopted by gov- targets for reducing emissions and showing inter- ernments as a policy response to climate change so national leadership; and communications tend to place the threats and costs yy carbon pricing is the most cost-effective means of climate change as the leading issue. However, there DESIGNING MESSAGES to achieve those reductions, and the short-term is no strong research that justifies this, and commu- costs are justified because they help avoid the far nicators need to choose early on in the policy design larger long-term costs. 31 process the extent to which they will place climate change in the foreground of their communications. This language may be effective for economically literate policy specialists. However, there is strong To make this decision testing should explore: evidence from a large body of cognitive research that shows that this language will be counterproductive yy the level of public concern about climate change; with wider audiences. Professor Daniel Kahneman, yy whether people understand the role of carbon and who won the 2002 Nobel Prize for economics for his fossil fuels (which is essential for understanding work on the role of cognitive bias in economic decision the reasons for carbon pricing), and who they hold making, found that the strongest bias often pertains to be responsible for climate change; to three variables: cost, time, and certainty. People yy whether there are other related issues addressed are more inclined to avoid cost, discount the future, by carbon pricing that can elicit greater public and avoid uncertainty. They will give disproportionate concern—for example, air pollution; and favor to choices offering certain short-term benefits, yy whether climate change has become a polarizing even when these are not economically optimal. 32 issue and people have formed strongly entrenched Kahneman warns that, from a cognitive perspective, positions. arguing for a certain short-term cost to mitigate a larger, uncertain future cost is the weakest possible >> Option 1: Give a high prominence to climate combination of these innate biases and the most change likely to lead to avoidance. 33 If people express a high level of concern about climate Support for carbon pricing rises when it is presented change, especially around recent salient weather as yielding benefits over both the short and long-term, events, then carbon pricing can be presented as a 44 Guide to communicating carbon pricing solution to a national threat that requires a strong – focusing on vehicle pollution), or it might focus on and active policy. For example, in Sweden the popu- how the application of revenues is seen to work ( lation expresses a high level of concern about climate Case study: Communicating visible expenditure in change and the government always makes clear links California). Alternatively, communicators might lead between its carbon tax proposals and its national with the positive arguments for energy transition (for mitigation targets. 35 example, arguments around energy independence, new jobs and business opportunities), and place emis- However, there is a danger that if carbon pricing is so sions reduction within a wider narrative of energy and strongly associated with climate change, a flawed or technological transformation. failed carbon pricing policy could undermine public concern around the wider issue. In countries with strongly polarized attitudes on climate change—for Designing trial narratives example, Australia—the perceived failure of carbon pricing has provided sustained ammunition for un- for testing dermining public engagement with climate science. 36 Narrative research38 and a wide body of social and A review of best practice on communicating climate psychological theory finds that people respond to change37 suggests the following conclusions that narratives that embody their values and identity in should be incorporated in carbon pricing narratives: this formulation: yy Talk about climate change as a challenge and an opportunity. Extreme threat messaging might yy Validation: this is who you are, and you are valu- reduce engagement, especially among “swing” able citizens/organizations. audiences. yy Relevance: these are your concerns, and they are yy People have a tendency to distance themselves justified and important. DESIGNING MESSAGES from climate change, framing it as a problem for yy Social proof: people like you are concerned and “future generations” or other countries, which want to see action. makes them less willing to accept current costs. Climate change needs to be communicated as a yy Positive outcomes: when we take this action, we current concern, especially in relation to salient see wider changes that make the world the way extreme weather events (though communicators we wish it to be. need to tread carefully when linking these conclu- sively to anthropogenic climate change). This formulation provides a guideline for a narrative arc, but it should be used creatively rather than as a yy Stress the co-benefits of energy transformation formula or fixed sequence—communications might in terms of the health (usually the primary con- just focus on positive outcomes, or on addressing cern) and the economy. public concerns. Nonetheless, it is important to remember that climate change has a tendency to gen- >> Option 2: Give a lower prominence to climate erate emotional arguments of blame and shame, so change grounding communications in the position of respect If people are weakly engaged with climate change or and recognition for the audience is a fundamental do not fully understand the connection with emis- principle of good public engagement. sions, a narrative should give greater prominence to Exploratory research ( Step 3: Research) will other national concerns, or aspirations for the future. provide the content for the categories above and will Arguments concerning climate change should still be establish the priority that should be given to different included—this is, after all, the primary purpose of the arguments. From the exploratory research, communi- policy—but in a secondary position. cators can identify the content for trial narratives that The lead narrative might, therefore, relate to issues can then be tested. For example: that have a higher profile ( Case study: Costa Rica Guide to communicating carbon pricing 45 yy If an audience is concerned about national secu- pricing test narratives is given in ( Appendix A: The rity and dependence on imports of oil from more social science of message design). These can be powerful neighboring states, a carbon pricing augmented with language that conveys audience-spe - narrative could emphasize that this is a stable cific content. policy that will shift the economy toward more self-reliance and independence. Language that has worked for yy If an audience is concerned with social inequality, then a carbon pricing narrative could emphasize communicating carbon pricing that this is a fair policy which falls largely on the more powerful and affluent. With the important caveat that what narratives work is context-specific, the narratives set out in table 4.1 yy If an audience is concerned with economic reform have been found to be effective in a range of different and development, the narrative could emphasize countries and with different audiences, and are likely that this is a modern policy which will bring new to be among the front-runners for effective commu- jobs and opportunities. nication. These narratives have been further tested in the surveys developed to inform this Guide. In each Every national circumstance will be distinct, and case, the policy application needs to be coherent with this Guide cannot recommend any single narrative. the narrative, as suggested in the right-most column A good approach is to test a selection of narratives in the table. with a range of audiences. A range of standard carbon TABLE 4.1 Narratives that have been found to be effective in a range of different countries DESIGNING MESSAGES Frame Narrative Policy coherence Carbon pricing is a fair way to share respon - Applying revenue use that is in line with sibility for the carbon pollution that causes the theme of fairness might, depend- Fairness climate change, and to reward the compa - ing on the circumstances, include sup - nies that are most efficient and pollute the port for low-income groups, workers Fair, just, and least. It's not fair that heavy emitters can and communities, transitioning out of balanced; rewards dump their carbon pollution in the air we all high-carbon industries. The provision of and punishes breathe. Polluters should be held account- benefits or tax cuts for affluent groups able and should pay for the pollution that and concessions to major businesses they force all of us to live with. would undermine the theme. Putting a price on pollution makes sense. The more we pollute, the more we ought to pay. It’s a fair way to hold polluters The theme of balance would be under- accountable. It makes businesses that mined by perceived favoring of any one Makes sense, produce the most pollution pay more. It re - interest group over another, or a com - balanced wards businesses that are efficient and use plex and opaque structure. energy well. Carbon pricing strikes the right Sense, common- balance. It allows us to do what’s right for sense, flexible, The common-sense theme would be the environment and encourages us to shift balanced undermined by convoluted technical to cleaner and healthier renewable energy. language and a dependence on inacces- It is flexible and allows businesses to invest sible expert communicators. in the best solutions at the lowest possible cost. And it unleashes the creativity of busi- ness to develop new technologies. 46 Guide to communicating carbon pricing All around the world, forward-looking This positive vision offers new oppor- Shifting to clean countries are shifting to new, cleaner forms tunities and can be supported by other energy of energy. Carbon pricing will support that policy measures in renewables, and the shift, transforming our energy, and clean - Modern, new/ application of pricing revenues to new ing the air we breathe. Renewable energy renew, energy. It would be undermined if con - means modernizing the energy sector. We clean, shift cessions were offered to heavy pollut- can protect the environment and create ers in the energy sector. jobs at the same time—so why hesitate? CASE STUDY 4.1 Optimal public narratives – Canadian research CASE STUDY Optimal public narratives – Canadian research The largest body of rigorous and sustained research on communicating carbon pricing has been built in Canada. The narratives in ( Appendix A: The social science of message design) have been tested in seven surveys at provincial and national levels since 2003. 39,40,41 The research showed that many standard economic arguments had low overall support and failed to shift opinions. These can be considered to have failed as meta-narratives, although they may be more effective for specific policy audiences. They included arguments around “generating a price signal”, as DESIGNING MESSAGES well as arguments around the “consensus” or “majority” of leading economists saying that carbon pric- ing has been “proven to work”. As established by the surveys, claims that carbon pricing would “create a strong economy and new jobs” were generally not trusted because of distrust in government claims. According to the survey results, the narrative that received the strongest broad-based public support with open audiences, avoided polarization, and encountered the lowest resistance from opponents was a moral narrative framed around “our responsibility to do the right thing” and the fairness nar- rative summarized above. Narratives mentioning money performed poorly. The standard economic argument around external costs was tested in the following words: “Putting a price on carbon is a way to make sure that these forms of energy reflect their real costs...flooding, heat waves...etc” and was one of the worst performing narratives overall. The surveys show that people in Canada are doubtful that carbon pricing can change behavior and there was low support in the surveys for the statement: “If we make it more expensive to produce carbon, behavior will change”. People were twice as likely to support the more cautious statement: “Even if there is some uncertainty about the impacts of a carbon tax, we have to try new ways to make progress in reducing emissions.” Research found that messaging had little effect on people who already held strong views on carbon pricing. In Canada, like many English-speaking countries, people of conservative values were far more inclined than people with left-wing values to be skeptical of both climate change and carbon pricing.42 Yet language that was predicted to appeal to conservatives—for example, appealing to national lead- ership, security, and economic prosperity—did not make them become more supportive of carbon pricing. Such language also alienated the existing supporter base of political progressives. For this reason, the optimal narratives are likely to be those that perform best with open audiences and that are the least likely to alienate or anger opponents. Guide to communicating carbon pricing 47 Linking carbon pricing to broader In countries where air quality is a major concern, it is often beneficial to emphasize the role of carbon goals pricing in reducing air pollution. This is particularly Carbon pricing is typically adopted as part of a broader powerful where carbon prices target major sources policy package or strategy addressing climate change of local pollution, such as urban transport and heavy mitigation, energy or industrial policy reform, or fiscal industry, and/or are designed to specifically target air reform. In these cases, communications are likely to pollution. In other cases, communicators may choose be integrated within a communications strategy for to link the carbon price to broader energy transitions this overall package. It is important to coordinate with or raising revenues to address issues of wider public any parallel communications efforts that may be rel- concern. evant, and to ensure that messages are coherent and can build on the foundations and networks already created through existing strategies. CASE STUDY 4.2 Costa Rica – focusing on vehicle pollution CASE STUDY Costa Rica – focusing on vehicle pollution The proposed Costa Rican emissions levy is a good example of how a viable policy has been shaped around the public concerns. Estiven Gonzales, who advised the government on behalf of the PMR DESIGNING MESSAGES explains: “People don’t know what carbon is or how it affects the climate, so their main understanding is of pollution from the big clouds of smoke coming out of buses and trucks.” Costa Rica is developing its carbon pricing policy around the core narrative of air pollution. For the purposes of creating a consistent policy, the proposed emissions levy would cover other air pollut- ants, such as carbon monoxide, nitrous oxides, and particulate matter. Emissions would be calculated by creating an average emission factor per pollutant for each vehicle, based on its type, age, and fuel type, and multiplying that by the mileage measured at the vehicle's annual inspection. In this way, the levy would be seen to be related to the responsibility of each individual driver, rather than being seen as a blanket rise on fuel. This strongly disincentivizes inefficient and polluting vehicles and encourages high-performance, cleaner technologies. The policy proposal needs to anticipate and respond to possible opposition from the owners of large and heavy-polluting vehicles—in particular, trucks and buses. As it would affect older vehicles, it may also have an impact on lower-income households, although the overall effects would be progressive. Similarly, it can be beneficial to have a clear vision of low-emissions economy. We need to be very vocal about what the opportunities offered by the carbon price the benefits, the means for the transition, the options are, such as growth of the clean energy or technology brought by new technology, innovation, employment, sector.43 health and other issues. That’s what will give us the broad- er buy-in for wider policy.” —Juan Pedro Searle, Head of We want to build something broader, not only Climate Change Unit, Sustainable Development Divi- on climate change but on a transition to a sion, Ministry of Energy, Chile 48 Guide to communicating carbon pricing Linking carbon pricing to a story pay for government services and accept that the costs of national pride and progress need to fall somewhere. Research shows that people are more likely to accept a tax when the revenues are A meta-narrative around carbon pricing could also be spent in ways they support or are consistent with the woven into a larger story of national pride or prog- stated goals of the tax.46 Presenting the carbon price ress. In Chile, communications have emphasized the as providing funding for more popular policies, such broader transition to a low-carbon economy rather as green energy subsidies, and as part of an integrated than the carbon pricing instrument itself. This pres- climate or clean energy strategy, may, therefore, be a ents carbon pricing as just one of the multiple policy potentially effective approach to communications. instruments that will be used to achieve this goal. The carbon tax is thus situated as part of an attractive Focusing on revenue use is easier when revenues and positive vision for the future, linked to innova- are applied in ways that relate directly to people’s tion, new employment opportunities, and improved lives, such as funding clean energy and subsidies health. Similarly, reforms to the Swedish carbon tax for domestic energy efficiency, and returning have typically been adopted as part of broader tax revenues through subsidies or direct dividends reforms and have been communicated as a package.44 (   Getting revenue use right). Visibility can be increased with visible branding: for example, signs The federal government in Canada has deliberately reading “supported by revenue from the carbon price” built its communications around shared values: along public roads adjacent to solar plants. Our job is to communicate with all Canadians In addition, governments can develop clear and so we try to make the link between shared values regular reports and other communications materials and carbon pricing. We know Canadians identify as a re- describing how revenue has been used. This has, for source-based economy and as resilient people. So we instance, been highlighted as a big success of the Re - DESIGNING MESSAGES highlight those aspects of our history and the connections gional Greenhouse Gas Initiative (RGGI) – an ETS in the with innovation, the creation of jobs, considering the next north-eastern United States which channeled reve - generation—values we know resonate with all Canadians. nue from the auction of permits directly into emission We explain that innovation does not mean stopping what reduction and energy conservation programs. Per we do but doing what we do more efficiently and in a year, it is claimed that these have reduced emissions low-carbon way.” —John Moffet, Acting Associate As- by 5.3 million tons CO2, and have saved $2.31 billion47 sistant Deputy Minister, Environment and Climate in energy bills.49 Change, Government of Canada In linking the carbon price to revenue use, govern- ments may also choose to make comparisons to other Focusing communications around public services taxes pay for. For instance, in Canada, visible revenue use the government made a video to show how the car- bon tax is similar to the tax that led to the health care Research indicates that citizens are more responsive system, which was deemed to have helped move the to arguments that focus on the use of revenue from dialogue forward. the carbon price than those regarding its expected environmental impacts.45 People accept that taxes Guide to communicating carbon pricing 49 CASE STUDY 4.3 Communicating visible expenditure in California CASE STUDY Communicating visible expenditure in California By September 2016, the California Cap and Trade program FIGURE 4.1 ‘Dollars at work’. All grant- had generated nearly $4.1 billion in total, including more ees of the California Climate Invest- than $700 million for high-speed rail, almost $500 million ments program—buses, light rail and for affordable housing and sustainable communities pro - zero-emission trucks—display this logo. grams, $325 million for low carbon transportation, and more than $200 million for transit programs. 50 According to Stanley Young, the Director of Communica- tions for the California Air Resources Board, the program survived concerted opposition from industry lobbies in 2016 because of a campaign to showcase spending cap-and-trade proceeds on visible solutions with broad popular support: electric school buses, electric cars and trucks, new light rail stations, car sharing programs and investments in low-income communities: “Clear evidence of how the money was spent ensured the political future DESIGNING MESSAGES of cap-and-trade, so the face of cap and trade was clean buses and trucks, electric cars, low carbon transit – solutions that made a visible difference especially in low-income communities.”51 Focus groups in France, 56 and across Europe, 57 sup- Labeling a carbon tax ported by wider surveys, have found a widespread perception that environmental taxes are an excuse In the experience of most governments52 the title of for the government to raise additional revenues. 58 the carbon pricing policy is created at an early stage Limited research suggests these findings may also be by policy specialists and is hard to change. The choice applicable across emerging economies. 59 of the title for a carbon tax is an important decision and must be informed by professional communica- However, the polling only reveals part of the story. tions advice. Until that point, policy design should use For a government considering the different forms of ambiguous language—and should especially avoid carbon pricing, the research provides little evidence the use of the word “tax”. that taxes are inherently less popular than ETS. In one U.S. experiment, people expressed equal levels Opinion polling consistently finds that taxes are less of support, and rejection, when the same policy was popular as an environmental policy than subsidies presented as a “carbon tax” or as “cap and trade”.60 and regulation. This finding is consistent across a wide range of countries, including Austria, Australia, Indeed, for communications purposes, a tax has Bangladesh, Canada, Finland, Germany, Norway, Swe - certain perceived advantages over ETS: it is a simple, den, Switzerland, Taiwan, and the United Kingdom. 53 consistent, and easily understood mechanism that This even applies in the Netherlands and Norway— can be seen to work, working through established in- two countries with relatively positive attitudes toward stitutions, and is considered an appropriate purpose governmental environment policy. 54,55 of government. 50 Guide to communicating carbon pricing Decision: Given the negative views toward tax, com- “income”, “cost, “fiscal”, and “dividend” may be replaced municators have to make a strategic choice about by the more positive enabling language of “grants”, how they choose to present and name a carbon tax. “investment”, “encouragement”, and “support”. The decision on the title should be made on the basis However, there is no conclusive research evidence of the national circumstances and attitude research, which shows that relabeling a carbon tax makes a and must be made early and sustained through the significant difference to public attitudes. Polling in the policy process. U.S. has suggested that labeling it as a “fee” appeared to increase acceptance. 61,62 Other U.S. research has >> Option 1: It’s a tax, like other taxes, paying for found that people showed no preference between worthwhile purposes climate policies presented as an increased price or an A tax is simple. People understand that the govern- increased tax on gasoline.63 ment needs to obtain revenue to provide services and Regardless of the official title, opponents of the policy benefits. The way the revenue is spent (for example, may deliberately adopt the word “tax” in their cam- on public services or reducing other taxes) then be - paigning. The U.S. Cap and Trade Bill, designed as an comes the primary determinant of public approval. ETS, was still called a “tax” by opponents. The carbon Calling the carbon pricing policy a tax could also be pricing mechanism in Australia was officially an ETS seen as honest and trustworthy: if a policy looks like but opponents still called it a “tax on everything” and a tax and operates as a tax, it should be called a tax. the Australian opposition leader, Tony Abbott, cam- Jerry Taylor, a U.S. conservative who lobbies Senate paigned in the 2013 federal election with the rallying Republicans to support a carbon tax, puts it this way: cry: “Axe the Tax”. In such circumstances, advocates lost control over the communications and were forced Polling shows that it doesn’t make any difference into a defensive—and ultimately unsuccessful—strat- if you call it a tax, a charge, a levy, or a purple egy of claiming that their policy was not a tax. DESIGNING MESSAGES rose! Opponents aren’t stupid. If you call it a ‘charge’ they will quickly call it a ‘tax’ because that is what it is. By avoid- ing the phrase you appear as if you are uncomfortable Language and narratives with that conversation. So governments should call it a that may not work for carbon tax. They should say that they need revenue, that’s a fact of life, and to generate it they should tax the ‘bads’, communicating carbon pricing not the ‘goods’.” —Jerry Taylor, President, Niskanen Center (NGO) Language will vary greatly between different audiences and countries, so it is hard to predict with certainty the language that will be least effective. The following find- >> Option 2: Avoid the “t-word” ings are based on existing research, but should always Calling the policy a “tax” could dominate the way that be confirmed through testing with national audiences. people perceive the policy and create a negative fram- ing, especially in polarized environments with strong Technical climate terms organized opposition. The language to use for explaining carbon pric- Carbon tax initiatives have tried alternatives to adopt- ing should be appropriate for the audience, take ing a “tax”: including “fee”, “charge”, and “levy” (in audience concerns into account, and reflect the Spanish “canon ”) in Costa Rica; “Energy Climate Contri- narrative. Technical, economic, and financial terms bution” (France); or, simply, “carbon price” (in Canada). are appropriate for an economic policy audience In some cases, these are distinct legal instruments that but may be alienating in a meta-narrative that is function in similar ways to a tax, while in others they for wider use. The Guide provides recommended may legally be a tax but are communicated using a language to replace these technical terms ( Simple different name. Language that is associated with taxa- terminology). tion can be avoided. For example, the words “revenue”, Guide to communicating carbon pricing 51 The core language around climate change also FIGURE 4.2 Carbon is an ambiguous and poorly emerged from a specialist science context and may understood term that connects weakly with the perform weakly in communications. As evidenced wider issues of climate change by a large body of social research, 64 the public may have a very limited understanding of the mechanisms and causes of climate change, often confusing it with particulate pollution, depletion of the ozone layer, ra- diation, and even divine retribution. This uncertainty extends to basic terms and concepts, such as GHG or heat-trapping gas emissions and atmospheric concen - trations. Of particular relevance for carbon pricing is the fact that the general public are uncertain about the meaning of the term “carbon”, which extends to having a weak understanding of compound phrases such as low-carbon, high-carbon, carbon-neutral, carbon capture and storage, carbon pollution, carbon footprint, 65 and, of course, carbon pricing. Technical economic terms Economists (like any academic group) generate lan- guage and narratives built on the basis of their own worldview and intellectual culture. Economic argu- ments are, therefore, entirely appropriate for other DESIGNING MESSAGES Source: cartoon by Jorodo, www.CartoonStock.com economists and the politicians and business people who share their understanding. However, in order for a policy to become more widely technical language should be evaluated and test- accepted, accessible language is vital. As Chris Ragan, ed before use. Previous testing has demonstrat- Chair of the Canadian Ecofiscal Commission put it: ed that dry explanations of economic effective - “We need to remember that economists are not ness may resonate with specific groups, such as normal people and don’t use the language normal business, but will fail to engage the wider public people use!” Research conducted with professional ( Case study: Optimal public narratives – Cana- economists and the lay public have found that the two dian research) when applied in practice.67 groups hold fundamentally different understandings and attitudes across a wide range of policy issues.66 It is also important to remember that economic argu- ments are influenced by wider political ideologies—in The general public will find it challenging to under- this case, concerning the efficiency and desirability of stand or accept some of the core economic theo - competitive markets—and will be interpreted accord- ry supporting carbon pricing. For this reason, all ing to the political views of the audience. 52 Guide to communicating carbon pricing CASE STUDY 4.4 Communications lessons from the 2015 Swiss referendum CASE STUDY Communications lessons from the 2015 Swiss referendum On March 8, 2015, 2.2 million Swiss voters gave their opinion on an initiative, sponsored by the Green Liberal Party, to replace value-added tax (VAT) with a carbon tax on non-renewable energy. The proposal was rejected by 92 percent of voters—the highest rejection rate for any referendum in 74 years. A survey68 immediately following the ballot identified two primary reasons for the ballot’s near universal rejection: yy The focus on using revenues for tax reform was far less popular than if revenues had been ear- marked for environmental purposes. yy There was skepticism about whether the increase in energy prices could actually generate a change in behavior. The referendum can also be interpreted as a large-scale testing for messaging around utilitarian economic arguments. The primary messages presented the carbon tax as an effective way to recycle revenue, that it would reduce costs for business, strengthen the economy, and make renewable energy sources competitive without subsidies. DESIGNING MESSAGES Clearly, these arguments did not overcome people's skepticism. The Swiss experience reinforces wider findings that the general public does not understand, accept, or value the arguments often put forward by economists. Economist proponents of carbon pricing also often However, the words ‘cost’ and ‘price’ are, for the inadvertently use language that can reinforce existing wider public, frame-words associated with sacrifice skepticism. For example, two quotations from publi- and loss. As noted above, people are psychologically cations supporting ETS say that it “veils the costs to inclined to be cost averse, and comparing costs en- consumers”69 and it “creates economic constituencies courages them to mobilize values around competition (lawyers, auditors with a direct financial stake in the and self-interest.71 Research in Canada found that policy).” 70 Both quotations will encourage the per- all narratives containing the word “cost” performed ception that ETS is an opaque process that creates badly. opportunities for elites. People’s willingness to bear costs is contingent on the three core issues discussed extensively in this guide: Language around cost effectiveness, fairness, and positive wider outcomes. The economic language around carbon pricing focus- Testing in Canada of narratives for a higher and lower es strongly on costs and prices. For example, it talks level of tax found that people chose generic mes- about setting a “price signal” and “internalizing the saging when a lower level of tax was proposed but social costs”. Economists argue that carbon pricing is strongly preferred the narrative that “all revenues the “least-cost” or most “cost-efficient” option. would support energy, transit, and energy efficiency” Guide to communicating carbon pricing 53 when a higher level of tax was proposed.72 An ex- promote the objectives of carbon pricing and the planation was not provided, but we can speculate, revenue it generates (and the benefits these bring), based on the wider research, that at lower levels of and then mobilize arguments to show that these large tax, revenue might not seem sufficient for significant objectives can be achieved at a relatively minor cost. energy transition, but at higher levels the consistent application of revenues becomes more important. Expert consensus Communicators have sometimes sought to emphasize Proponents of carbon pricing often point to a body of the low cost of carbon pricing measures: for example, expert opinion, citing the status of academic experts in promoting the U.S. Cap and Trade bill, the Environ- supporting the policy, or referring to a “consensus of mental Protection Agency described the personal cost scientific opinion”. as the equivalent of the price of a postage stamp a day.73 There is no evidence that these strategies were There is currently no evidence that this language effective. Research around shifting environmental be - builds support. Wider experience from other fields (for haviors has shown that justifying solutions to climate example, vaccination) 74 provides several examples of change as “easy” or relatively “painless” undermines failed public engagement where overdependence on people’s natural intuition that climate change is a expert opinion was counterproductive and increased major threat that requires a concomitant level of opposition. Claims of consensus, or arguments that effort to overcome. the debate is closed, leads to an open invitation to find high-level qualified experts who disagree with The conclusion is that communicators should be that consensus. This has been found in the frequent careful about using language around cost and price, skeptical challenges to the “consensus” of scientific and should not assume that the arguments regarding opinion supporting anthropogenic climate change. low cost will be effective: if they contradict people’s Communicators should test this language before DESIGNING MESSAGES intuitive expectation or their past experiences with using it, or recognize that there is a range of views that similar promises, they could indeed be counterpro - can contribute successfully to policy formation. ductive and reduce trust. A stronger strategy is to 54 Guide to communicating carbon pricing STEP 5 Explaining 5 EXPLAINING CARBON how carbon PRICING pricing works Guide to communicating carbon pricing 55 ‹ At a glance: Explaining how carbon pricing works › Communicators often find it hard to present complex economic policies in accessible language. The Guide recommends that different explanations are developed for different audiences. For the general public, communicators should decide the degree to which they will explain how the policy works, or whether they will focus instead on what the policy does. This chapter provides alternatives for technical terms and offers simplified explanations of carbon pricing, carbon taxes, and emission trading schemes that can be adopted in many contexts. Research consistently shows that people have a very Our polling found that the more you explain limited understanding of the mechanics of carbon emissions trading, the less people like it. Firstly, pricing, 75 leaving them vulnerable to misinformation because there is an antipathy to the idea of the ‘polluter EXPLAINING CARBON and limiting their ability to have an informed debate. pays’ principle—people dislike the idea that polluters can While carbon pricing is a relatively straightforward buy their way out of pollution, rather than reducing it. concept to explain to economists and policy experts, Secondly, the terminology of auctions, markets, and per- when reaching out to a broader audience it is often mits that you can buy and sell make people associate it necessary to find different ways of getting the point with greedy finance markets that you can’t control or trust. across. PRICING So, we push the positive side of emissions trading. Our Decision: Policymakers will need to make a strategic mantra is that it will generate jobs, improve the quality choice about the degree to which they will explain the of life, clean the air, clean the environment. Unless we full complexities of their pricing mechanism: a choice are specifically asked about the internal workings of this that is dependent on national circumstances, political conjugated program, we don’t go out of our way to ex- judgment, and the results of testing. plain it in any great detail.” —Communications Director (confidential) >> Option 1: Explain the full complexities of the carbon pricing policy This Guide recommends that different explanations are developed for different audiences. For example, On the one hand, a well-informed population will be business, financial, and policy audiences will expect in a better position to make complex policy choices. a detailed technical explanation. General public For this reason, most communicators seek to inform audiences will need something that can be explained the public about the mechanisms of carbon pricing. in a few sentences. Having a simple and coherent policy will greatly assist in the creation of simple and >> Option 2: Choose carefully how the carbon coherent communications. Explanations should be pricing policy will be explained secondary to the narrative, focus on the most import- On the other hand, there is a risk in explaining ant elements that policymakers wish to communicate, mechanisms that may cause confusion and misun- and, ideally, avoid providing unnecessary detail. derstanding. Communications may be better focused on explaining the outcomes of carbon pricing than the Simple terminology means by which it operates. This risk may be greater for ETS, which is more complex and less familiar than a In everyday life, people use simple language outside tax based policy. These complexities, especially when specialist professions or fields of study. Technical lan - they include exemptions, can exacerbate an existing guage can result in audiences “switching off” or failing distrust in government and business. to understand the policy correctly. As noted above, 56 Guide to communicating carbon pricing economists use the words ‘price’ and ‘cost’ with a spe - TABLE 5.1 Technical terms used in carbon pricing, cific technical meaning. and potential simplified forms When communicating with the general public, commu- Technical term Simplified form nicators should look to replace technical terms with simplified forms that can be more easily understood, Prescriptive Government regulations but that describe the mechanism as accurately as is regulations deciding what people can needed. Table 5.1 provides examples of simplified and cannot do forms for a variety of technical terms used in carbon pricing. Regulation Rules As an illustration of how to apply simplified language, Price signal, market Price incentives, or just the following presents a quotation from an academic signals “prices” source and a simplified explanation that stays close to the original meaning using examples from the table Aggregate outcomes Benefit the greater good above. Internalizing costs/ Including the damage EXPLAINING CARBON Original text externalities caused by carbon pollu- tion in the price “[Carbon pricing], in contrast to prescriptive regu- lations, provides a flexible approach for environ- Progressive taxation Taxation where the mental regulation that privileges market signals wealthy pay the largest to incentivize behavior change, while focusing on share PRICING aggregate outcomes.” Regressive taxation Taxation where the poor Replacement text pay a disproportionately “[Carbon pricing], in contrast to government regu- larger share lations that limit what people can and cannot do, Double dividend A double benefit—makes provides a flexible approach for setting environ- economic and environ - mental rules that makes polluting products more mental sense. A win-win expensive in the market and encourages people to make informed choices that benefit the greater Revenue recycling Using the carbon price good.” revenue to reduce other taxes Simple explanations Social cost of carbon The cost of damage that results from emissions The following explanations of carbon tax and ETS have been developed with the purpose of being simple, Elasticity of demand How much consumers accessible, and coherent for a broad and non-specialist respond to higher prices audience. While they may often need to be adapted to fit the specific context and features of the mechanism Emissions being presented, they aim to provide a workable start- Emissions reductions abatement ing point for explaining carbon pricing to a lay audience. Guide to communicating carbon pricing 57 Appendix A provides a range of variations from mul- Again, this explanation can be expanded somewhat tiple sources for explaining carbon pricing, both to to provide more detail on the mechanics but without general and specialist audiences ( Appendix A: The using technical language. To date, the majority of social science of message design). carbon taxes have been levied on the production or sale of fossil fuels, and so a more detailed description Carbon pricing might focus on the mechanics of these kinds of taxes. In simple terms, carbon pricing can be explained as A carbon tax is a levy that requires companies and follows: consumers to pay for each ton of carbon pollution they emit. This usually involves taxing fossil fuels ac- Carbon pricing requires polluters to pay for the car- cording to how much carbon they emit when burned. bon pollution they emit. This encourages choices and This encourages people and businesses to choose investments that are good for the environment and lower-emitting fuels, reduce their fuel use, or switch helps build a sustainable, green economy. to renewable energy. At the same time, it raises funds that can be spent on government services, green Where a full explanation is required that enables more investments, or reducing other taxes. understanding of the mechanics of carbon pricing, EXPLAINING CARBON this can also be achieved by using simple, relatable Emissions trading language: In simple terms, an emissions trading scheme (or Carbon pricing encourages businesses and consum- ‘ETS’) can be described as follows: ers to reduce their emissions of carbon and other harmful greenhouse gases by making it good finan- In an emissions trading scheme (also known as ‘cap PRICING cial sense to do so. By placing a price on every ton of and trade’), the government sets a cap on pollution emissions, carbon pricing discourages pollution and and distributes or sells a limited number of pollution rewards businesses that produce fewer emissions by permits within that cap. Companies that pollute more making their products more competitive. [This leads have to buy more permits. Companies that pollute less to more innovation, stimulates green investments, can save money by buying less permits or by selling and reduces emissions overall.] any spare permits, so it makes good financial sense to emit less. And, because the number of permits issued Carbon tax falls over time, the total pollution also falls. A carbon tax can be described in a similar manner ETS is often not as easily understood as carbon taxes. to carbon pricing generally, while highlighting some When a fuller description of the mechanics of the sys- of its particular features. In particular, it is helpful to tem is required, a description similar to the following reference how the money is spent, as revenue raising may be provided: is often a key goal of a carbon tax.76 This could include referring to a specific purpose or a more general In an emissions trading scheme, polluters are re- explanation, such as “essential services”. However, quired to hand over one permit for every ton of car- where there is high public distrust over the use of bon dioxide (or other greenhouse gases) they emit. public money, it may not be wise to emphasize this Polluters in the scheme can trade their permits with aspect. other participants. This means those who pollute less pay less, and those who pollute more pay more. A carbon tax is a levy that polluters pay on the carbon This scheme encourages businesses to find ways to they emit. This encourages people and businesses to reduce emissions in their production activities and make choices and investments that are good for the stimulates investments in low or zero emissions, such environment. A carbon tax raises money for [pur- as renewable energy or more efficient factories. The poses] and reduces the need for other taxes. total number of permits in the system is capped, en- suring that total emissions stay within defined limits. 58 Guide to communicating carbon pricing STEP 6 Choosing 6 communicators COMMUNICATORS CHOOSING Guide to communicating carbon pricing 59 ‹ At a glance: Choosing communicators › Research consistently finds that trust in the communicator is critically important for effective communications. This chapter explores the role of the communicator by investigating: yy The importance of trust. It is essential that carbon pricing narratives are promoted by trusted communicators. yy The role of the communicator. The credibility of the messenger is as important as the message. yy The process for recruiting trusted communicators. When trying to reach specific groups it is often recommended to engage trusted people from within a specific group who are capable of showing a deep understanding of the needs and concerns of that audience. yy Celebrities as advocates. How engaged the celebrity is on climate change or carbon pricing and how they are perceived publically will have an impact on how well they can engage a public audience. the crisis, we can anticipate that for some audiences The importance of trust there will be residual suspicion regarding any complex COMMUNICATORS technical financial instrument. These concerns often As stressed throughout this Guide, trust is essential in emerge in qualitative research on carbon pricing. 81 communicating carbon pricing: a trusted communica- Policymakers may, for this reason, wish to show how CHOOSING tor can mobilize support. Distrust will poison any ar- abuse or gaming of the carbon price will be managed gument, however well-informed. Governments are not and curtailed. well trusted when they propose financial costs, even by supporters of the ruling party,77 and communications The exploratory research ( Step 3: Research) design must identify, nurture, and support external should aim to establish the level of trust in financial communicators who can motivate different constitu- and governmental institutions. Where public trust in encies: especially those who can be seen to be inde - the government is low, there is a lower likelihood that pendent and crossing different political boundaries. the message communicated by the government will be accepted. Indeed, it has been noted that the only Trust in governments has been falling for two de - countries with a carbon price above $40/ton of CO2 cades.78 Countries with a relatively high level of trust in have relatively high trust and low corruption, which government efficiency have relatively strong support may indicate that the public is willing to accept higher for carbon pricing.79 However, a lack of trust in the carbon prices when they trust that the money will be honesty of government or concern around corruption managed effectively. or inefficiency will inevitably undermine confidence in a government's ability to manage a complex new financial instrument. The role of communicators Likewise, trust in financial institutions is low in many People depend on social cues ( How people re- countries and has not yet recovered from the financial ceive information and form attitudes) —shortcuts crisis of 2008–10. 80 Given the role of derivatives in to help them make decisions on issues that they do 60 Guide to communicating carbon pricing not fully understand—and on this basis they are likely Trust in carbon pricing cannot be separated from pub - to follow the opinion of people or institutions they lic trust in how the revenues are spent. The agencies have found, on past experience, to provide reliable managing revenues need to be trusted to do so in a guidance. Conversely, they will also automatically take way that is effective, honest, and transparent. Those a contrary position to any person or institution that receiving revenues—for example, where revenues they have found, on past experience, to be unsafe are funding renewable technologies—also need to be or untrustworthy. The credibility of a message often seen to be effective and worthwhile recipients. depends as much—or even more—on the person de - livering it than on the coherence of the message itself. Those who are engaged in policy formation need to understand the landscape of public trust and to antic- Citizens may choose to follow the cues of the leader- ipate distrustful responses in policy design. ship of the party they support. Specific audiences will have their own preferred cues—for example, a faith leader or a business leader. Within the highly polar- Recruiting trusted ized context of U.S. politics, these elite cues have been communicators found to be the single most important determinant of public attitudes on climate policy. 82 Trusted communicators are key to transmitting in- formation about carbon pricing. Although messaging The messenger in politics is far more important and media promotions are important, communica- than the message because people tend to dis- tions design often ignores the critical importance of trust what they hear from actors who do not share their the communicator. worldviews and their values. It’s a fact of human psychol- ogy. If we are going to engage conservative audiences then Engaging trusted peer communicators can be a valu- communications have to be forwarded by conservatives.” able strategy, both for reaching a wider audience and —Jerry Taylor, President, Niskanen Center for enhancing the credibility of a message. Trust is COMMUNICATORS perhaps the key factor in the success of the message. The formation of trust and protection of trustwor- Research indicates that the public’s trust in those thiness is essential for the success of carbon pricing promoting the carbon price is among the key deter- CHOOSING communications. Although some language will per- minants of their support for a carbon pricing policy, form better in testing, there is little reason to believe pointing to the importance of engaging communica - that good messaging alone is sufficient to win broad- tors with moral authority. 83 based support for carbon pricing. When trying to reach specific groups it is often rec- The belief that carbon pricing instruments, particu- ommended to engage trusted people from within larly complex ETS, can be effective requires trust in that group. For example, businesses are probably the integrity, independence, and impartiality of all more likely to trust business leaders in their industry parties, from implementing agencies to individual than either politicians or celebrities. Nonetheless, communicators. In emissions trading, a far wider when communicators and target audiences operate range of institutions participate in the carbon market, in the same sector, the effectiveness of a business including banks and financial institutions; polluters communication mainly depends on the capability of will be actively involved with the trading of permits. a trusted source to show a deep understanding of the For proponents, this is one of the key strengths of needs and concerns of its audience. 84 For example, emissions trading. However, for critics, indications in Alberta, a panel of business leaders in the energy that polluters may gain financially from trading sector successfully presented the case on how the permits are frequently used to argue that emissions introduction of a carbon tax and related subsidies for trading is morally flawed. the energy industry can achieve the required GHG emissions reductions while growing the economy. 85 Guide to communicating carbon pricing 61 A related conclusion involves the enhanced credibility and political causes. Moreover, the involvement of of local organizations that are known and trusted. For celebrities in public speeches or media appearances instance, international environmental NGOs often generates additional coverage by leveraging their seek to engage with national or local NGOs on carbon “star power”. 87 pricing, recognizing that the latter are often likely to be more effective in communicating the message to Nonetheless, the ability of celebrities to positively local audiences. 86 influence the public’s perception of a carbon price will depend on a number of factors, including their credibility on the topic in question and how they are Use of celebrities perceived by the audience. 88 Celebrities are invari- ably people of high net worth with correspondingly A growing number of celebrities endorse climate ac- high-carbon lifestyles. When they become involved tion. Politicians and campaign organizations believe in public discussions around climate change they— celebrities provide social cues that can significantly and the campaign they support—are vulnerable to shape the public's perception of climate change charges of elitism or hypocrisy. 89 COMMUNICATORS CHOOSING 62 Guide to communicating carbon pricing STEP 7 Integrating 7 INTEGRATING COMMUNICATIONS WITH POLICY communications with policy Guide to communicating carbon pricing 63 ‹ At a glance: Integrating communications with policy › The design of the carbon price impacts the ability to communicate it and how it is perceived by the public and other stakeholders. Integrating communications and policymaking enables governments to design carbon prices that are communicable and to ensure coherence between policy and narratives. Stakeholder engagement is an essential part of this process. Internal consultations with ministers, legislators, and relevant government departments are crucial for building broad support for the carbon price and for developing a consistent and coordinated position on carbon pricing within the government. External consultations with major stakeholder groups, such as industry, labor, and consumer groups, and civil society, provide an invaluable means of testing the acceptability of policy proposals and reactions to the narrative, identifying sources of support and opposition, and building awareness of the benefits of the policy. Public consultations are less common but can be particularly beneficial where the development of the carbon price is expected to become a high-profile issue. Features of policy design that may help improve communications include the following: yy Showing results. Successful communications depends on the policy being delivered—there are INTEGRATING COMMUNICATIONS WITH POLICY no “magic words” that can save a policy if it is poorly designed. Communications should promote clear examples of the policy’s outcomes in terms of emissions, health, and jobs. yy Getting the revenue use right. Many people respond more to communication on revenue use than communication on the carbon price itself, particularly where revenue uses are tangible, such as earmarking for green infrastructure or returning revenue to people. yy Keeping it simple. Where the design of a carbon price is overly complex, it may be challenging to communicate—in particular, to a non-expert audience. yy Integrating carbon pricing with other policies. Where carbon pricing forms part of an integrat- ed policy approach, governments are able to communicate the fact that carbon pricing is part of a broader vision for ensuring clean air or building a low-carbon economy. yy Building constituencies of support. Policies that create clear benefits for key groups will help build strong constituencies in favor of support, though policymakers need to be careful to avoid negatively impacting the effectiveness and fairness of the policy. yy Ensuring fairness. Carbon prices that are deemed to be unfair, due to the absence of alternatives to emitting or impacts on vulnerable groups, are easy to attack. This can be prevented through complementary policies that help people access mitigation technologies and limit negative impacts. 64 Guide to communicating carbon pricing Research undertaken to develop this Guide indicates Integrating communications, that communications considerations are often not systematically integrated into the design of the policy. policymaking, and stakeholder A range of research indicates that the design of a engagement policy impacts the ability to communicate it and how it is perceived by the public and other stakeholders, in Carbon prices are usually developed through a turn impacting the acceptability of the carbon price. multi-stage policy process. While this will vary from Governments can, therefore, benefit from integrating jurisdiction to jurisdiction, in most cases a number communications into the policymaking process early of common elements will be present. These include on, in a methodological way. the development of multiple iterations of a policy proposal, some form of stakeholder consultation, This chapter begins by discussing how to integrate the adoption of a legal instrument by government or communications into the policy design and stake - parliament, and, eventually, evaluation and review. In holder engagement process, before looking at how some cases, there may be an independent process specific design decisions can help improve the com- dedicated to developing the carbon price, while in municability of the policy. others the carbon price will be adopted as part of a broader climate policy or fiscal reform package. INTEGRATING COMMUNICATIONS WITH POLICY Guide to communicating carbon pricing 65 Figure 7.1 Integrating communications, policymaking, and stakeholder engagement Stakeholder Communications Policy process engagement PREPARATION Appointment of communications yy Formation of working group specialist for working group yy Inter-ministerial discussion yy Senior policy and politician consultation Messaging for achieving yy Establish cross-party/departmental political support support POLICY DESIGN INTEGRATING COMMUNICATIONS WITH POLICY Audience mapping, identify key audienc- es, key stakeholders Options paper Stakeholder interviews and potential opposition Public attitude research / surveys Intra-government consultation Qualitative research based on audience segmentation Advice on name, structure Policy paper Priority and elite and revenue use Including name and policy format stakeholder consultation DEVELOPMENT OF MESSAGING yy Design of communications strategy yy Design of key messages Broader stakeholder Inter-governmental briefings and narratives engagement yy Anticipate counter-arguments yy Revision and approval of legislation / Identify and brief peer-communicators Commission external agencies for public policy engagement yy Brief ministers and senior politicians LAUNCH OF POLICY Media and public promotion including Promotion by stakeholder communicators Senior political endorsement advertising in networks Continued promotion, espe cially of use Implementation of policy Stakeholder briefings of revenues Survey research Advice on progress to senior politicians Research stakeholder attitudes on public attitudes and policy makers POLICY REVIEW AND ADJUSTMENTS 66 Guide to communicating carbon pricing GUIDE TO COMMUNICATING CARBON PRICING, 2018 Whatever the process, it is worthwhile taking a strate - Internal and intra-government gic approach to integrating communications through- communications out the policy development, from initial design all the way to roll-out and review (figure 7.1). This can be Internal consultations with ministers, legislators, and closely aligned with the stakeholder engagement pro - relevant government departments are crucial for cess, although a comprehensive approach to commu- building broad support within the government for the nications will go far beyond stakeholder consultations. carbon price. Engaging with these actors through one-on-one meetings, inter-ministerial meetings, and Integrating communications, policy development, and even capacity building workshops, can help identify stakeholder engagement in this way has a number of messages that resonate with different decision mak- important benefits: ers, as well as cross-political interests and concerns: for example, international profile, leadership, and long- yy Developing an acceptable and communicable term prosperity. When approaching senior politicians policy. Carbon pricing policies that respond to and decision makers, presenting a proposal which has people’s values and concerns will almost always already received a good deal of buy-in and which in- be easier to communicate. Listening to these cludes communications research supporting the design concerns and integrating them into the design of can be important in engaging them on the viability of the policy can foster ownership and enable better the policy. communication. Internal communications are also important for INTEGRATING COMMUNICATIONS WITH POLICY yy Coherence of policy and narratives. Narratives ensuring the government has a consistent and coor- need to be consistent with the policy if they are dinated position on the development of the carbon to be seen as trustworthy by stakeholders. The price, that messaging is consistent, and that responsi- policy and the overall (meta-) narrative needs to bilities regarding communications are clearly defined. be developed in an iterative process where each informs the other (figure 7.1) ( Designing trial Integrating communications narratives for testing). and stakeholder engagement yy Identifying sources of support and opposition. The process of stakeholder consultation enables External consultations with major stakeholder groups, policymakers to identify which actors are likely such as industry, labor, and consumer groups likely to to support, and which are likely to oppose, the be affected by the carbon price, as well as civil soci- carbon price. This enables the identification of key ety and academia, usually begin after some internal audiences and potential allies that can be engaged consultations have taken place and there is some level as trusted communicators and form the basis of of shared understanding among government entities supporting coalitions. It also enables the design of regarding the objectives and direction of the carbon messages that pre-empt major criticisms. price. External consultations can provide an invaluable means of testing the acceptability of policy proposals yy Improving policy design. Stakeholders—particu- and reactions to the narrative, identifying sources larly government agencies and industry, academic of support and opposition, and building awareness stakeholders, and civil society organizations—will of the benefits of the policy. Using multiple forms of often bring to the table new information, experi- stakeholder consultation, such as workshops, smaller ences, and perspectives that policymakers do not meetings, and online consultations, can help to both have. Involving them throughout the process can reach more people and take advantage of the differ- lead to a better and more effective policy design. ent communication dynamics each forum offers. Guide to communicating carbon pricing 67 We sent invitations to workshops to many stake- It’s not a just a communications strategy, it’s something holders: private sector, academia, public sector. that you do because it’s good for positive policy.” —Nicolás You want to involve people from the beginning because Westenenk and Juan Pedro Searle, Climate Change you know that you can gain a lot of buy-in from them. It is Unit, Sustainable Development Division, Ministry of key to find champions, stakeholders, who will send a Energy, Government of Chile message to the general public or outside the private sector. CASE STUDY 7.1 Stakeholder engagement in South Africa CASE STUDY Stakeholder engagement in South Africa Sharlin Hemraj, Director: Environmental and Fuel Taxes at the National Treasury, Government of South Africa, says that “stakeholder engagement has been critical for building political acceptability” of carbon pricing during its long journey through the South African policy process. INTEGRATING COMMUNICATIONS WITH POLICY The process began by engaging stakeholders on an early discussion paper on the carbon tax, using their feedback to develop a (more-advanced) policy paper and then engaging stakeholders again on that policy paper. Usually, the consultation was very broad-based, involving a single stakeholder workshop where everyone was invited, including businesses and NGOs. This was followed with direct bilateral meetings, as requested, with industry associations, business associations, companies, and NGOs. Drawing on her experience, Sharlin identified two important stages: Firstly, stakeholders should be involved in refining the design of the carbon pricing instrument. In South Africa, they started with an announcement in the budget of the intention to explore a carbon tax and the development and publication of a technical discussion document for public comments. The development of the carbon tax policy included economic research and analysis and stakeholder input on the detailed policy design. Secondly, there must be a parallel stakeholder engagement process initiated at a very senior level with high-level workshops and dialogues to sensitize the CEOs of the big emitters and share the details of the policy design with high-level policymakers. In retrospect, she says, this elite process did not begin early enough in South Africa. Public consultations can be particularly beneficial consulted on with key stakeholder groups. However, in contexts where the development of the carbon more focused approaches also exist, including focus price is expected to become a high-profile public pol- groups to test narratives and policy proposals, as well icy issue. In some cases, public consultations involve as representative surveys and polling. An innovative broad invitations for members of the public to com- and more involved approach to public consultations ment on a draft policy proposal, usually, one which is that have proven successful in other policy areas is in a relatively advanced phase and has already been the model of a “citizens’ assembly.” 68 Guide to communicating carbon pricing A CLOSER LOOK 7.1 Citizens’ assemblies A CLOSER LOOK Citizens’ assemblies A citizens’ assembly is a deliberative body comprising randomly selected citizens that are broadly representative of the population, who are tasked with studying and developing policy proposals on key issues. Over the course of regular working sessions, the assembly is presented with evidence from a variety of experts and listens to the positions of a range of lobby groups. Citizens’ assemblies have proven effective in accurately determining the views of the population on divisive topics, building consensus, and enhancing the legitimacy of policy proposals. In Ireland, the national Citizens’ Assembly was tasked in 2017 with generating proposals to revise the country’s abortion laws. Initially thought of as too ambitious to be feasible, the Assembly’s proposals were ultimately passed by a landslide majority in a public vote. The Assembly has since been tasked with considering climate change policies. In Australia, a citizens’ assembly to discuss carbon pricing was proposed in 2010 by then Prime INTEGRATING COMMUNICATIONS WITH POLICY Minister Julia Gillard. However, this proposal was met with heavy opposition from politicians and commentators, some of whom felt that this amounted to abdicating leadership or even undermining the Parliament. The proposed assembly was never operationalized. The contrasting experiences in Ireland and Australia highlight the importance of national context in determining the right approach to consultations, including taking into account political traditions and values around the role of the public in decision making. The building blocks behavioral considerations aimed at achieving greater political acceptance should take precedence in deter- of communicable policy mining the design.90 The main consideration of any policy design is whether Different policy design options will, of course, resonate the policy will be effective in achieving its objectives. more strongly with different audiences in different Many of the technical pre-conditions of effective poli- jurisdictions and contexts. Nonetheless, some pre - cy are also conducive to good communications: being liminary insights can be drawn from existing research simple, being consistent, and being seen to work. and experience, which can help to provide some first orientations for policymakers on this matter. Where obtaining support for the carbon price is a key objective of communications, policymakers can bene - Getting revenue use right fit immensely from designing a policy that is both easy to communicate and contains design features that are As discussed above ( Focusing communications likely to resonate with key audiences. Indeed, while around visible revenue use), many people respond economists tend to argue for maximizing economic more to communication that focuses on revenue use efficiency in designing carbon prices, communica- than that which focuses on the carbon price itself. This tions experts and political scientists often argue that has significant relevance for policy design, as how the Guide to communicating carbon pricing 69 revenue is used makes a notable difference to wheth- FIGURE 7.3 Keeping explanations of carbon pricing er the public will generally support the carbon price. simple is essential to engaging non-expert audiences Polling has consistently found that earmarking carbon price revenues for green infrastructure and technology, and providing direct rebates to the public, garners significantly greater support than approach - es favored by economists—in particular, revenue recycling through tax cuts or deficit reduction (see, for example, figure 7.2, which presents polling results from the United States changing over time under alternate uses of the revenue).91 Lump-sum dividends may be particularly successful in countries where Cartoon by Alan Moir, Sydney Morning Herald, published July 5, 2011 issues of economic inequality, political mistrust, and polarization are prominent.92 Tax cuts and other financial adjustment are, in contrast, largely invisible Integrating carbon pricing or poorly understood. with other policies FIGURE 7.2 American support for taxing carbon- Governments may benefit from communicating car- INTEGRATING COMMUNICATIONS WITH POLICY based fuels, under alternate use of the revenue bon pricing as part of a broader vision for address- from the tax ing climate change, ensuring clean air, or building a low-carbon economy. Such approaches will naturally be more credible where the carbon price forms part of an integrated policy approach and the links between specific policy instruments are clear and communica- ble. For example, Mexico’s carbon tax was introduced in the context of energy sector liberalization, while Colombia’s carbon tax was introduced as part of fiscal reforms to support peacebuilding. Where air pollution is an important concern, govern- ments can choose to integrate addressing air pollu- Source: Puskin and Mills 2017. Moving the needle on American support for a tion explicitly into the carbon price. For example, Chile carbon tax: A report from the National Surveys on Energy and Environment. adopted parallel taxes on carbon and specific local air pollutants, which are applied simultaneously to the same sources, while sources in highly contaminated Keeping it simple areas pay a higher tax rate on local pollutant emis- sions. Costa Rica has similarly proposed an emissions Where the design of a carbon price is overly complex, levy that would be applied to both carbon and local it may be challenging to communicate—in particular, pollutant emissions. to a non-expert audience. While it may be argued that there are advantages to potentially unpopular poli- Building constituencies of support cies, such as carbon prices, not being well understood, this can just as easily become a drawback, particularly While all carbon pricing policies will necessarily have where governments are trying to promote the bene - winners and losers, policies that create clear benefits fits of the carbon price. for key groups will help build strong constituencies 70 Guide to communicating carbon pricing in favor of support. For instance, in Alberta, the pro - sate for any additional costs they face due to the vision for offsets from the agricultural sector to be carbon price. For example, Australia provided direct eligible for compliance with the carbon price helped payments to low-income households and the elderly attain the active support of the powerful agricultural (among others) under the Australian Household As- lobby there.93 At the same time, policymakers need to sistance Package. be careful to ensure any such design choices do not negatively impact the effectiveness and fairness of Similarly, efforts to reform fossil fuel subsidies have the policy. frequently included compensation measures to limit any impacts on poorer households. Alongside narratives focusing on the regressive nature of these Fairness and equity subsidies, these measures have helped provide credi- The perceived fairness and equity of a carbon price bility for governments’ claims that reforms are fair. In is among the most important factors influencing Indonesia, reforms to fuel prices in 2005 provided un- support for the policy.94 Where the carbon price is conditional cash transfers to low-income households perceived as placing an undue burden on the public at the time the price increase took effect. Further or on specific groups, such as poorer or rural popula- reforms in 2013 were accompanied by a guidebook tions, or specific industries, obtaining broad support outlining compensation measures.96 In Jordan, the may prove an uphill battle. A common reason carbon government also adopted a cash transfer program prices are seen as unfair is that those required to pay alongside fossil fuel subsidy reforms in 2012.97 for it have—or perceive themselves to have—few INTEGRATING COMMUNICATIONS WITH POLICY alternatives to emitting. Where this is the case, it is often hard to promote the argument that the carbon Showing results price is designed to reduce emissions and it is more While the sections above point to the potential for likely to be perceived as “just another tax”. adapting the design of the carbon price to enhance In this context, many governments have accompa- the ability to communicate it, it is also important to nied carbon prices with complementary measures not let these considerations overly hinder the main designed to provide alternatives to consumers and goal of designing a policy that is effective in achieving businesses, sometimes using the revenue from the its stated objectives. carbon price to fund these alternatives. For instance, Ireland introduced the Better Energy Warmer Homes Indeed, where a policy is badly designed or unsuc- Scheme and its sister policy, the Better Energy Homes cessful in achieving its objectives, it will be more Scheme, the same year as the carbon tax, to support vulnerable to attack. This is particularly true with homeowners in increasing their homes’ energy respect to environmental objectives. For instance, efficiency by installing their own renewable energy in Chile, opponents to the carbon tax have placed a generation. Similarly, California has invested large strong emphasis on studies indicating that the tax, as shares of the revenue from its Cap and Trade program currently designed, is not likely to result in significant in public transport and electric vehicle incentives.95 mitigation and they have claimed that this indicates the tax is primarily a revenue-raising measure.98 In other cases, alternatives to emitting may be Similarly, the limited success of many existing carbon available but not readily understood by the public or prices to achieve deep emissions reductions has pre - businesses. In these cases, communication can focus vented many NGOs from supporting them.99 on actively reaching out to relevant emitters to make them aware of the options available and the sup - These considerations bring into focus the challenging port mechanisms in place to help them apply these question of how to balance acceptability and optimal measures. policy outcomes in policy design, particularly when the two are at odds, such as in the case of rebates Governments may also ensure fairness by providing and earmarking of revenues, which are popular but direct payments to vulnerable groups that compen- are considered economically inefficient.100 Guide to communicating carbon pricing 71 It is important to note that there may be different lines policy design to enable effective communications is of attack, depending on different design aspects from a delicate process that requires careful balancing and different sides, and measures to appease one side consideration of the potential implications of each may draw additional criticism from other sides. For approach. example, the EU ETS has taken extensive measures to avoid leakage and loss of competitiveness, which has The positive results of the carbon price can be show- responded to industry criticisms that the ETS would cased by preparing regular progress reports that make them less competitive internationally; however, highlight reductions in emissions (relative to what these measures have been criticized by some NGOs would happen in the absence of the policy), use of as being “handouts” to industry or leading to “windfall revenue, and other co-benefits. profits”.101 The lesson from this is that adapting the INTEGRATING COMMUNICATIONS WITH POLICY 72 Guide to communicating carbon pricing STEP 8 Designing 8 a communications campaign DESIGNING A CAMPAIGN Guide to communicating carbon pricing 73 ‹ At a glance: Designing a communications campaign › This chapter provides policymakers with practical advice on, and a step-by-step process for, imple - menting a communications campaign. It offers a range of options, ranging from small-scale and low-budget initiatives to full-scale national advertising campaigns. It suggests the key components of a brief for recruiting external marketing and creative agencies. The specific steps it provides include: yy Defining the campaign and the measures of success. yy Identifying the budget. yy Creating a matrix that defines the audiences, the issues they care about, the barriers to engage - ment, and the call to action. yy Choosing the best media for each audience. Media includes print, television, advertising, email, and social media. The Guide then provides a framework for briefing an external creative agency for larger public campaigns. What is a campaign? What is the campaign goal? A clear campaign goal is essential for achieving The campaign is the external face of the communi- measurable results and achieving the objectives of cations strategy, working through a range of media, the communications strategy. Weak objectives that designed to reach key audiences, achieve the objec- are unspecific and hard to measure tend to lead to tives, and leverage the research insights, messaging, unfocused campaign strategies that do not achieve audiences and strategies already identified in the goals or objectives, and increase the likelihood that larger strategy. A communications strategy may, resources are spent on tactics that do not advance the therefore, involve a number of campaigns working agenda. through different media. An effective campaign is not simply concerned with awareness-raising—it should One important goal for a successful carbon pricing DESIGNING A CAMPAIGN set out a clear action for people to take in support. campaign is to maximize stakeholder and public sup - port for the policy being implemented, and therefore to enhance the acceptability and sustainability of the Defining the campaign policy. For example, to achieve this, one objective may be to engage open audiences so that they form a po - The following set of core questions helps to define sition on well-communicated arguments for carbon any campaign. The answers will draw on information pricing ( Step 2: Identifying audiences). Audiences gathered for the communications strategy and may can demonstrate support for carbon pricing by tak- be identical. In some cases, further research may be ing a defined action, which can be monitored as a required. measure of success. Polling will also gauge how this support changes over time. 74 Guide to communicating carbon pricing What is the budget? The target audience should be defined as clearly as possible. ( Segmenting audiences by attitudes The budget dictates the shape of the campaign: how and values). For example, “the public” or the “busi- many people can be reached, what kinds of tactics ness community” are not well-defined audiences for a can be employed, and how long the campaign can campaign. A campaign focused on “women living in a run. The budget covers: key area who are interested in clean air and health”, or particular industries, would be far more likely to suc- yy staff time; cessfully tailor messages and reach those audiences. yy consultants (if necessary); A strategy should prioritize audiences that can spread yy testing the creative concept; the message to others. For example: yy advertising placement costs (online, billboards, posters, etc.); and yy A “grasstops” strategy would mobilize trusted institutions (such as civil society organizations) yy content development and production (e.g. or leaders to use their profile to spread the graphic design, videos, posters, advertisements). campaign. When assessing the budget, consider options for yy A focus on demographics with wider influence. leveraging existing internal and external resources. For example, mothers are often strongly involved For example, the costs can be reduced through part- in their communities, demonstrate high levels of nerships within government, with civil society, or with concern about family health and child welfare, private sector organizations. Working with allies who and might organize in favor of a campaign built can share the campaign, mobilize their own spokes- around these values. people, and host events will allow the budget to cover yy A focus on high-level communicators who can other needed areas. access wider broadcast and print media. What is the timeline? Washington State, in the United States, has twice put pricing carbon on the ballot for its voters. It failed Build a timeline by starting from the campaign’s close. in 2016, and the resolution is up for a vote again The close may be a specific event, such as a vote or in 2018. One of the primary reasons the measure a point in the future by which the campaign will be failed the first time is because progressive groups in expected to have produced tangible results—for Washington were not aligned on the structure of the example, a year after the introduction of carbon policy, and many groups opposed the initiative on the pricing. Methodically work back from that date to the ballot. In 2018 campaigners have sought to engage launch, keeping in mind that resources must stretch a much broader range of groups through networks to cover the length of the campaign. Depending on and trusted messengers. This has resulted in one the national context, campaigns usually require at of the broadest coalitions formed in the American DESIGNING A CAMPAIGN least nine months in order to have enough time to do environmental movement, including labor unions, the research, create the content, and build sufficient communities of color, First Nations/indigenous tribes, momentum. environmentalists, working families, businesses, and faith communities. What audiences must be reached and mobilized to achieve the goal? What do target audiences care about? A successful campaign must know who it is addressing. These insights should take priority during campaign The target audiences may have already been defined design so that the concept, messaging, and tactics in the communications strategy. It is also possible appeal to the target audiences’ values, capture how that the campaign’s objectives could be narrower: for this campaign is relevant to them, overcome barriers, example, winning over a very specific target audience. and move them to take action. It is also essential to Guide to communicating carbon pricing 75 assess what the audience already knows about the build support for a policy, it should find other ways issue. Some audiences may be very familiar with cli- for people to get involved and to measure success. mate change and carbon pricing, others may only be For instance, people could sign a petition to show vaguely familiar with those concepts, and some may their support, change their profile picture on social be actively opposed. media, or make a public pledge. The campaign could also measure success via polling before and after the What messages resonate with campaign to see if attitudes toward the policy have shifted as a result. If the campaign focuses on the the target audience? private sector, the action might be to sign a letter Research ( Step 3: Research) for developing the together with other business leaders. communications strategy will highlight the narratives that will resonate well with the target audiences What is the current climate and become the basis for the overarching campaign for this campaign? message and story. If audiences are unfamiliar with climate change and/or carbon pricing the messaging Assess the current political and social climate for must use accessible language and concepts to explain the campaign, as it will help determine how engaged the purpose of the campaign. audiences will be, how receptive media will be to cov- ering the issue, and how hard the campaign will need How or where can target audiences to work to win support. Questions to ask include the be reached? following: Research should identify the best ways to reach target yy Where does this issue rank in terms of importance audiences, through which media, and which commu- to target audiences? nicators they most trust. A typical campaign will use yy What other issues are most important to people multiple media to ensure duplication of the message. now and over the next year? yy Have there been similar campaigns in the past? If What is the call to action? so, what were the results? Campaign communications should provide a clear call yy Are there groups actively organizing against this to action so audiences know what they ought to do. A effort? specific and compelling action that is directly related to the campaign goal will be much more successful yy Are there other groups actively organizing for this than a vague action of indeterminate impact (such as effort? going to a website for more information). However, yy Are there any upcoming events that would jeopar- the campaign communications should also ensure the dize this campaign or radically shift the political/ action does not set too high a bar, such that people will social climate? DESIGNING A CAMPAIGN not engage. For instance, sending an email or making a call to a political representative is a lower-bar action than attending an event. Over time, the campaign Creating a campaign matrix can make bigger asks as people stay involved, but it should start with something easy. It is helpful to create a matrix that captures all the key highlights above as a touchstone that keeps the cam- If a campaign does not have a concrete goal (such paign grounded throughout execution. A theoretical, as passing legislation), but rather is simply trying to partially completed example is provided in table 8.1. 76 Guide to communicating carbon pricing TABLE 8.1 An example matrix for developing a campaign strategy What issues do they care Who is the audience? about? What values do they What barriers exist? hold? For example: Family health; clean air and water; Concerns that this will hurt the safe communities; financial economy and thus their family; Mothers, aged 25–40, socially stability; opportunity for their skeptical about climate disasters liberal, and moderate children; fairness; hard work How/where do we reach What messages resonate? What is the call to action? them? Our children deserve to breathe Facebook; schools; centers of Call your representative and tell clean air; it’s only fair that worship; them to protect our children’s polluters pay for polluting our air health by supporting a price on carbon What is the overarching Select the media that target audiences already use, whether that’s social media, ads in public spaces, or campaign concept? community events ( Applying research to the design and testing of pricing communications). With the information above gathered, the overarching campaign concept can be crafted. This may include a Choose strategies and tactics that are best suited creative look and feel, a logo, a tagline, and a hashtag. for the call to action. For instance, if the goal is to The concept should be creative, simple, compelling, get people to write to their elected representative or memorable, and easily understandable. It should con- pledge to vote for a measure, Facebook and email are nect with audiences’ core values and activate them to both extremely efficient at getting target audiences support the campaign goal. to take an action. If audiences are not online but there are strong community centers, host events in those The campaign concept and messaging should be centers to educate people and urge them to share the tested with target audiences to ensure it works campaign with their friends and family. ( Designing trial narratives for testing). An easy and inexpensive way to test a campaign is to create Establish metrics for success for each tactic, to some content with slight variations in the language monitor progress. Compare the campaign with other and test it with a small group on Facebook. Commer- national engagement campaigns in order to set realis- DESIGNING A CAMPAIGN cial communications consultants will be familiar with tic benchmarks. Metrics might include the number of this form of testing. calls made to elected representatives, signatures on a petition, or rallies held across an area, etc. If there are no similar campaigns to compare with to set bench- Engaging target audiences marks, consultants can help set these or other allies or partners who have run similar campaigns may be The key to effective engagement is to choose the most willing to share their data. effective strategies and tactics to reach the audience, and to not waste time and resources on methods of Enlist messengers that target audiences will trust ( engagement that do not serve the campaign goal. Step 6: Choosing communicators). The messenger General recommendations include the following: may be more important than the message, especially Guide to communicating carbon pricing 77 in countries where trust in government or institutions and identify the editor or contact to whom to send the is low or declining. People are often more receptive piece. Remember that opinion pieces are not reports: to messages from their peers, such as people in the they must take a position and make an argument, and same political party, city, occupation, or class, than to should be engaging to read. those from other messengers. Identifying and recruit- ing trusted messengers to help spread the word will Niche print/online press and radio greatly enhance the chances of message uptake and Sector-specific or niche outlets (such as industry or success. trade publications and specialist websites) can target specific audiences and get publicity for stories that Lastly, repetition is essential. People need to hear might not be picked up by national, mainstream pub - a message over and over before they internalize it. lications. Placing several stories in smaller outlets can Ensure that each key message is repeated across also help increase the chances of those stories being media, and by multiple voices, over the course of the picked up by larger outlets later on. campaign. Social media Choosing media and tactics Social media is highly cost-effective and, because content is often shared between peers, may be more The following are general, brief descriptions of several trusted than mainstream media. The key is to choose tactics to engage audiences, with explanations of how platforms that target audiences are using, that are they can be most useful. The importance of choosing suited to the content produced, and that are appro- the right tactics for each audience and national con- priate for the call to action. text cannot be stressed strongly enough. Each platform has advantages and disadvantages, so Mainstream print news media, online press, assess them carefully. and radio yy Facebook is especially good at converting au- These media outlets will spread the messaging and diences to take an action like signing a petition, reach a wide swath of the population. Build a list of donating, or calling an elected representative. reporters that cover relevant issues to keep apprised yy Twitter is excellent for joining the political conver- of the campaign and pitch them on developments like sation and reaching journalists, politicians, and new research or events. The campaign may need mul- other cultural opinion leaders. tiple lists of reporters: one that focuses on environ- ment, one on industry or finance, politics, etc. Ensure yy Instagram is well suited to highly visual content. your pitch will appeal to the journalist, and email and yy YouTube is well suited to visual content, presenta- call to get in contact. It can take persistence to land a tions, and debates. story, and simply sending press releases is not usually DESIGNING A CAMPAIGN an effective way to land stories in crowded media yy LinkedIn and other industry networks or email markets. Mobilize trusted messengers, experts, and lists are good ways to reach professionals. public figures to speak to journalists—those inter- views make covering a story more attractive. Social media must be closely monitored for intentional misinformation. Any campaign effort should include Opinion pieces are an effective way to communicate some “social listening,” similar to media monitoring, a message directly to an audience, especially when to understand the conversation about your issues. It authored by messengers who are well-known and is wise to do some of this social listening before the trusted by target audiences. To pitch an opinion piece, campaign begins to anticipate possible attacks and be sure to look up the appropriate length (most out- misinformation campaigns. There are multiple tools lets want pieces of around 700 words, but it can vary), for doing this. 78 Guide to communicating carbon pricing Email Public billboards, banners, or advertisements dis- played on websites are best suited to raising broad For some audiences, email can be a highly effective public awareness. If the goal is to get people to take way to keep people engaged in the campaign with an action or go to the campaign website then targeted new information, campaign developments, and new advertisements on Facebook will be more effective. actions to take. The key to using email effectively is to have access to large mailing lists, including those If the target audience is not primarily online, then of allies, and to ensure that staff time is allocated to investing in events, grasstops organizing, or street sending regular emails to keep audiences updated advertising will be more effective. and engaged. Even if an audience is online, door-knocking, phone Website banking, and other in-person engagements are often the most effective tactics for persuading people to Every campaign should have a website, even if it’s just a adopt a specific action, such as voting on an issue. simple landing page with the core messaging, primary action, and frequently asked questions. Other pages Always think about how to use each medium to am- might be more elaborate, hosting videos, graphics, plify tactics, so audiences are surrounded by the key and facts about the advantages of pricing carbon. messages. Many of these tactics can be combined: for example, events can be shared live or reported Keep in mind, however, that very few people will find in news media. Event attendees can share photos the website on their own, so simply building a website and videos afterward on their own networks. Stories (no matter how well produced) is not enough. People published in mainstream outlets can be shared on the must be driven to the site through social media, website and social media channels. events, and other types of online content. Lastly, every tactic in the campaign should be mon- Events itored so that tactics can be adjusted. Questions to Events can launch a campaign, mark key milestones, ask include: generate news stories, or reach audiences who are not online. Press conferences, protests, marches, yy Are people taking the desired action? Who is and stunts, and public art are ways to draw attention to the who isn’t? campaign and make news. Street teams, conferences, yy What types of messages, ads, events, or other or meetings are ways to share information with the tactics are generating the most success? wider public, specific neighborhoods or audiences, or yy Is the media picking up key messages? Why or sector leaders. The target audiences and campaign why not? goal will dictate the types of events that are most effective. Sample campaign tactic combinations DESIGNING A CAMPAIGN Paid media/advertising Table 8.2 is designed to give examples of how a strate - The majority of campaigns rely on at least a small paid gy might combine tactics for a target audience within media budget to spread the message widely. The most a given budget. Exact bundles of strategies and tactics successful campaigns combine many approaches, will be dictated by the campaign goal, mechanism ensuring that audiences are seeing the message from of change (vote, regulation, etc.), target audiences, multiple angles. national context, and budget. The key to maximizing resources here is to: yy choose locations/platforms used by the target audiences; and yy create advertisements that have a clear purpose. Guide to communicating carbon pricing 79 TABLE 8.2 An example matrix for developing a campaign strategy with combined tactics for a target audience within a given budget Audience strategies Media and tactics Online tactics In-Person tactics Budget and target: Low budget, targeted to a specific sector: e.g. business community Understand the audi- yy Trade press, such as yy Ads targeted to that yy Forum with sector ence and map who or industry publications audience on social media leaders what influences them. and blogs yy Sponsorship of radio, yy One-to-one meet- The audience will have yy Opinion pieces from podcast, newsletters, or ings with sector specific interests and leaders in that sector trade publications leaders, including concerns about a carbon yy Release analysis of yy Website with a landing peers who favor the price. the impact on the page containing key facts pricing policy sector for the sector yy Public events with yy Press call for industry validators from that media at the launch sector Budget and target: Low budget, targeted to the general public Depending on the yy Opinion pieces from yy Ads targeted to that yy Grasstops engage - campaign goal, from trusted messengers audience on social media ment and events research identify up to in top-tier, online, they use, primarily yy Mobilize volunteers three key audiences to and local outlets. graphics to organize and mobilize. yy Press call for the yy Landing page with the call spread the word One segment should campaign launch to action yy Advertising in public already be in favor, and yy Stunts and activities spaces, especially in two segments should be that will attract areas owned by the in the neutral category press campaign or allies but open to persuasion. Budget and target: High budget, targeted to the general public Depending on the yy Opinion pieces yy Ads targeted to each yy Grasstops engage - campaign goal, pick from, and interviews audience on social media, ment and events three to five key with, trusted combining graphics and (churches, schools, audiences to mobilize. messengers in the videos moms’ groups, etc.) One segment should top-tier, online, and yy Microsite with the call to yy Mobilize volunteers already be in favor, two local outlets action, videos, stories, and to organize and DESIGNING A CAMPAIGN segments should be in yy Press event for the infographics spread the word the neutral category but campaign launch yy Sponsorship of podcasts, yy Advertising in public open to persuasion. yy Release reports radio, or outlets audiences spaces used by The remainder of funds and analysis on the consume target audiences can be targeted toward benefits of pricing yy TV and radio ads yy Stunts, including engaging harder-to- carbon for the yy Produce one 90-second flashmobs, provoc- reach audiences or nation and specific overall video and three to ative public art, and reserved for opposition sectors four 10–15-second shorts rallies attacks. yy Feature stories on yy Audience-generated trusted messengers content campaigns to or key sectors share why they support pricing carbon 80 Guide to communicating carbon pricing Budget and target: Low or high budget in a politically polarized environment with a well-funded opposition Segment audiences yy Press call or event to yy A sampling of the tactics yy Grasstops and very carefully, ensuring launch campaign listed above, depending grassroots engage- the campaign targets yy Opinion pieces from, on the budget level ment and events at least two groups and interviews with, yy Pay special care that all (churches, schools, that are in the neutral key messengers, content and messaging moms’ groups, etc.) category but open to especially those that appeals to persuadable Focus particularly persuasion. appeal to or share groups and does not on persuadable Select trusted and identity or values contain easy lines of audiences unexpected messengers with opposing groups attack yy Mobilize volunteers to lead the campaign yy Conduct research yy If possible, deploy aggres- to organize and and diffuse attacks. on the opposition to sive, targeted spending spread the word predict its strategy and organizing to mobilize yy Advertising in public and arguments key audiences space used by target yy Train all spokespeo- yy If high budget, reserve audiences ple in debate tactics some funds to create yy Stunts, provocative and facing tough videos or content to public art, and questions respond to attacks rallies yy Release reports and analyses docu- menting benefits of pricing carbon Briefing an agency some initial messaging or creative campaign concepts. It is possible to request the agency to price out each If an agency will be hired to help with any piece of the piece of the campaign and provide multiple budget campaign, issue a request for proposal (RFP) to solicit tiers, though it is best to provide a budget range to bids. The RFP should include the following: work within. yy the campaign goal Once proposals are evaluated, interview the top two yy target audiences (as far as known) or three agencies and ask specific questions about the proposal, allow them to ask questions, and assess yy barriers (as far as known) how well the teams might work together. Effective yy timeline campaigning requires a good shared understanding yy budget DESIGNING A CAMPAIGN between agency and client on the approach and style. yy any specifics the agency should address (e.g. being able to communicate in certain languages, reach faraway locations, etc.) What can go wrong? yy the agency team working on the project There are a few common pitfalls when running a cam - yy a summary of the past experience of the agency paign, and a few easy ways to avoid them. and references from clients 1. Undefined goals and audiences The agency will provide a proposal that outlines their process to achieve campaign goals, including an Time and resources are wasted when it is unclear approach to strategy and tactics. Depending on how what needs to be accomplished and who is nec- specific the RFP is, they may also be able to provide essary to achieve it. Similarly, it is essential to not Guide to communicating carbon pricing 81 lose sight of the goals and audience. That’s why Dealing with counter-attacks the audience and message map ( Applying research to the design and testing of pricing The following strategic responses should be applied communications) is so helpful: it can act as a to deal with counter-attacks: touchstone for the entirety of the campaign. 1. Create a set of talking points to answer the tough 1. Messaging or creative communications questions and attacks that will inevitably arise. that don’t connect with audiences 2. Ensure the team has drawn not only upon their Research conducted at the beginning of the own experience, but has also combed the media campaign ( Step 3: Research) will help avoid for negative stories and the barriers identified in this problem. Once the messaging and creative the audience research. communications are developed, they should be 3. Do not repeat the opponents’ arguments. Craft tested online or in focus groups and updated responses and talking points that use core cam- where necessary to ensure that they will be suc- paign messaging and appeal to the values of target cessful at scale ( Designing trial narratives audiences. For instance, if opponents argue that for testing). “carbon pricing destroys jobs” do not repeat the 2. Applying tactics instead of a strategy allegation or say “carbon pricing does not destroy jobs”. Instead, respond with a positive message Sometimes it’s easier to think of a string of tactics, such as “carbon pricing rewards innovation and as opposed to a strategy. Take the time in the stimulates the economy”. For this reason, popular beginning to construct a strategy that will achieve “myth vs fact” one-sheet campaigns are often the goal, and then fit tactics within it. Always ask: ineffective. how is this tactic advancing the strategy and help - ing achieve the goal? 4. Establish a rapid-response protocol for breaking news or attacks. The first component of any good 3. Not building a strong coalition and/or protocol is deciding when to respond to an attack alienating allies and when to leave it alone. This saves time and energy and avoids a common mistake of ampli- Successful campaigns have wide buy-in from fying and publicizing an attack by responding different sectors and demographics. Before to it. Secondly, put in place an approval process embarking on a campaign, be sure to reach out so it’s clear who is drafting the response, who is to organizations that share similar goals, have approving it, and who will deliver it/how it will a campaign that works for everyone, and try to be delivered. This process should be able to be build a larger network together. Leaving groups implemented in as little as 24 hours if necessary. out—or worse, alienating them—can have a det- DESIGNING A CAMPAIGN rimental or even disastrous effect on a campaign. 4. Going over budget Be sure to build a campaign plan that maps di- rectly to the budget, including how much money can be spent at each phase. If an agency is hired, ensure they flag when tasks are taking longer than anticipated. This will allow the campaign to correct its course early in the process. 82 Guide to communicating carbon pricing Appendices  Appendix A: The social science of message design Appendix B: Explaining research methodologies Appendix C: Explaining carbon pricing Appendix D: Carbon pricing narratives for testing Appendix E: Managing counter-arguments Guide to communicating carbon pricing 83 APPENDIX A The social science of message design are most likely to accept, and incorporate language What are narratives? that is presented in a form that resonates with their values.107 Stories are the primary means by which people make sense of the world, learn values, and form belief sys- Adapted to a policy context, an effective narrative tems that give shape to their lives—a conclusion that contains five elements: is endorsed by scholars from across disciplines as di- verse as linguistics, psychology, and literary theory.102 yy this is who you are (the identity and values that make you important and valuable); There is a large body of academic work focused spe - yy this is what you care about; cifically on the idea of “policy narratives”, which can yy this policy effectively addresses your concerns; be summarized as having a setting, a plot (beginning, yy this policy reflects your values in the wider world; middle, end), characters (heroes, villains, and victims), and and a moral of the story.103 Narratives are especially important for engaging the public on climate change yy through this policy, the world becomes more the policy because they can give a topic that is often tech- way you wish it to be. nical and remote from people’s daily concerns a social People have a range of values and may draw on differ- identity—especially for groups who have not yet been ent ones at different times. A large body of research particularly engaged in the subject.104,105 across 44 nations, with over 25,000 respondents,108 shows that certain types of values cluster together What are values? (while others conflict with each other). In particular, “self-enhancing” values like the pursuit of wealth, sta- Case studies show that a strong narrative validates, tus, and power conflict with “self-transcending” values incorporates, and reflects the values and the iden- like altruism and concern for the welfare of others. tity of their audience. Values are complex, but for There is experimental evidence to suggest that peo - practical purposes they can be summarized as the ple’s desire to take collective action on climate change “guiding principle in the life of a person”.106 Research is strengthened by the “self-transcending values”.109,110 comparing the effectiveness of different climate These findings extend to individuals whose values change narratives consistently concludes that people score highly on measures of materialism.111 84 Guide to communicating carbon pricing Applying narratives and What are cues and frames? values to communicating In an information-saturated world, people apply carbon pricing shortcuts—known as heuristics—to make decisions on complex issues. “Cues” and “frames”112 are two Effective communication of carbon pricing requires interrelated aspects that are commonly applied in a coherent and compelling narrative. In a contested politics and in the communications of complex policy. political space, a weak carbon pricing narrative will be unable to compete effectively with more com- A cue is a small piece of information that allows in- pelling counter-narratives. Communications based dividuals to save time and avoid learning the details on economic efficacy would be very weak from a about the policy issue at stake.113 Cues can be verbal, narrative perspective—this is a technical argument or visual—body language is a cue. that contains no actors, motivations, or values; it will compete poorly against a compelling anti-authority Cues are also the means by which people decide counter-narrative. For example, a claim often heard whether an issue is relevant and worth attending from populist opponents is that carbon pricing is a to. Advertising, media coverage, and mass public tax-grab for governments to fund wasteful projects, gatherings all seek to provide a cue that a particular burdening ordinary working families. This narrative issue deserves attention. One form of cue is an has actors, motivations, and victims. endorsement. For example, if we say that a carbon pricing policy is supported by 20 Nobel Prize-winning Carbon pricing narratives should seek consistency economists, this provides the cue that it is reputable in the values they promote, especially the balance and effective if—and the condition is essential—the between ethical concerns over climate change and audience trusts the opinion of expert economists. financial rewards. Communications should identify a core values frame to be applied consistently through- A frame provides a focus on a specific interpretation out all communications and policy. of an issue which defines the context under which it Effective narratives for carbon pricing may be based can be understood.114 on collective concern (“this is what we should do”) and collective identity (“we are doing this because this is In communications theory, frames are embodied in who we are”), rather than purely on financial reward individual words and phrases that relate to deeper (“this will generate major new opportunities, jobs values or principles, or that mark social identity.115 and wealth”). The audiences most likely to respond For example, the framing of fairness provides people positively to financial reward messages are those for with the means to interpret the policy (“Is it fair?”), to which these are their primary values—for example, challenge the policy (“It is not fair!”), to relate oneself business people, financiers, and some politicians. to it (“Fairness is important to people like me”), or to However, communicators should be wary of extrap - distance oneself (“Fairness is a value of people unlike olating messages from one audience to the public as me”). a whole. Effective framing is an essential component of all The choice of narratives used should always be deter- communications, especially in politics and policy de - mined after testing messaging with both self-enhanc- sign. Once established, frames can be highly resilient ing and self-transcending values. Research in Cana- and resistant to outside challenges, however strong da—which has had the most comprehensive testing the evidence. of any country—confirms the expectation: narratives based on self-transcending values, such as fairness, performed far better in testing than narratives based on competitive, economic opportunity. Guide to communicating carbon pricing 85 Applying cues and frames to Many of the words used to promote carbon pricing, such as “fair”, “flexible”, “efficient”, and “leadership”, communicating carbon pricing are frames that carry a wider meaning and appeal to the values and identities of different audiences. For complex policy issues like carbon pricing, people Frames are long-lasting and, once established, hard to will often seek guidance from communicators or insti- shift. A well-chosen frame could mobilize strong and tutions they trust. Whether a communicator is trusted sustained support for carbon pricing. However, a weak (or not trusted) then becomes a cue for whether to frame could undermine public confidence, especially accept (or reject) what they are saying. In some coun- if it is competing with a more effective framing chosen tries, political worldview can be a key determinant of by opponents. The choice of words used to describe attitudes on carbon pricing. The role of senior political a carbon pricing policy—for example, a tax, a levy, leaders provides “elite cues”, which have proven to be a charge—are all frames with different associations especially important in influencing attitudes on cli- that will determine how people will respond. Once mate change in polarized countries such as the United strongly established, such framing will be unlikely to States of America.116 shift through renaming or rebranding. 86 Guide to communicating carbon pricing APPENDIX B Explaining research methodologies As explained above ( Step 3: Research), there are testing (sometimes called split-run testing) offers two two main approaches to communications research— versions of the same text, with a small variation around quantitative and qualitative—with various combina- words or phrases that are being tested. Research may tions and derivations. also be in the form of an experiment where a sample is divided into groups, with one group not exposed to any carbon pricing language (the control) and other Quantitative research methods groups exposed to different framings. Quantitative research methods present a range of Sample sizes tend to be large. A 1,000-participant questions with a limited range of response options sized group is considered the minimum to avoid sta- and analyze the results using statistical methods. tistical error. In a country with a population exceeding Data is generally collected through telephone inter- 1 million people, a sample of 2,500 would be large views and/or online or paper surveys. Online surveys enough to generalize results that are significant (hav- are particularly useful for testing narratives because ing a 95 to 99 percent probability of being correct) to it is difficult for people to focus sufficiently on a block the general population. of text read over a phone. Weaknesses associated with quantitative research Quantitative approaches generally offer closed-ended include response bias (respondents not answering questions or short statements and invite a survey truthfully or giving the answers that they believe will respondent to choose a response that closely aligns create the best external impression), cost (a national with their own attitude. Open-ended questions offer- survey of 3,000 people can cost approximately ing personal responses may also be used in surveys, $25,000 to $30,000 in an economically developed adding a qualitative contribution and more depth to country) and, in the case of surveys, a lack of context the research. or nuance. Qualitative research methods can provide richer results because there is the capacity to ask Quantitative research may also divide a sample into follow-up questions aimed at a deeper understanding different groups for comparison. For example, A/B of ‘why’ people respond the way they do. Guide to communicating carbon pricing 87 Qualitative research methods Qualitative research methods seek to understand Weaknesses of in-person focus groups include their the meaning individuals give to their response. In expensive and time-consuming nature. Because they qualitative research, open-ended questions are em - have a smaller sample than quantitative research, phasized, allowing participants to speak in their own they can be more vulnerable to bias: the greater the words and from their subjective experience. Focus scale, the greater the likelihood of representing atti- groups are often the method of choice in qualitative tudes across an entire population. Recent research in research, involving discussions of one to three hours, Alberta, Canada, tested the same script and narratives facilitated by a moderator, with six to ten participants. around climate change across 50 groups, recruited to The facilitator leads the conversation with questions represent a comprehensive range of constituencies.117 from a predesigned script, following up with addition - al questions as required for greater clarity. Qualitative research can also involve structured interviews and informal sampling: for example, Focus groups produce the best results when par- initiating conversations with people on the street. A ticipants are from a similar social demographic or semi-structured variation might combine a quanti- have similar values. Communications research often tative approach (following a question template with applies a segmentation model to recruitment of limited answers), with the flexibility to ask follow-up participants, creating a range of focus groups repre- questions and probe responses more deeply. senting the different segments. The same script will then be applied across all groups to identify how at- In the case of carbon pricing, a qualitative research titudes and responses differ between the segments. program might involve a conversation with partici- For comparability of results, it is important to record pants about their reactions to a range of framings and demographic information and to use a consistent narratives. A trained moderator would then guide the interview protocol to support comparison of results. conversation using a series of semi-structured ques- tions to probe the reasons for different reactions. Focus groups are good for measuring attitudes, feel- Communicators may wish to consult the Narrative ings, beliefs, experiences, and reactions. Probing by Workshop qualitative research model, developed by the interviewer can provide in-depth information. Climate Outreach.118 88 Guide to communicating carbon pricing APPENDIX C Explaining carbon pricing The main part of the Guide recommends language text, from multiple cited sources, compiles different for explaining carbon pricing in a simple way for approaches for communicating carbon pricing to broad and non-specialist audiences. The following diverse audiences. Explaining carbon pricing TABLE C.1 Examples of carbon pricing messaging from other sources Source Description Commentary Canada’s Ecofiscal Carbon pricing affects many different This description focuses on the direct effects of Commission, choices. It increases the costs of any ac- a carbon price on actors’ behavior. Explained in “Clearing the air”119 tivity (driving, flying, heating, etc.) based non-technical, accessible language, it also pre- on how much carbon dioxide it produces. empts a common counterargument, i.e. that But that doesn’t mean that anyone and carbon pricing will result in everyone paying everyone can simply pay a higher cost. higher costs. After all, individuals and businesses have choices. Those choices give them ways to avoid paying the carbon price. And in fact, that’s exactly the point. Carbon Market Carbon pricing is the implementation This description helps readers understand the Watch 120 of the polluter pays principle for green- relationship between carbon pricing as a gen- house gases, usually in the form of eral term and the specific forms it can take. By either a carbon tax or a requirement to making direct reference to the polluter pays purchase permits to pollute, commonly principle, and to cap and trade and ETS, it as- referred to as a cap and trade or emis- sumes a certain amount of prior knowledge on sions trading scheme. the part of the reader and is most likely to be more effective with audiences where this prin - ciple is well understood and accepted. Guide to communicating carbon pricing 89 Carbon Pricing A price on carbon helps shift the burden This description also incorporates the princi- Leadership for the damage back to those who are ple that the polluter pays. It also introduces an Coalition 121 responsible for it, and who can reduce it. element of “choice architecture”— presenting Instead of dictating who should reduce carbon pricing as an alternative to other, more emissions where and how, a carbon restrictive mitigation policies, rather than as an price gives an economic signal and alternative to no action. It does not address the polluters decide for themselves whether source of carbon, however, and hence assumes to discontinue their polluting activity, that the reader knows that carbon emissions reduce emissions, or continue polluting are linked to the burning of fossil fuels. and pay for it. World Bank and Carbon pricing helps level the playing This statement assumes more prior knowledge OECD – FASTER field between activities that impose on the part of the reader than others, and so is Principles for climate change damages and low- or more suitable for a somewhat more specialist Successful Carbon zero-emissions activities that do not. audience. In addition to focusing on polluters, Pricing122 Carbon prices can gradually lead to it brings into the picture those who do not pol- structural transformations by enhancing lute or who pollute little. In doing so, it draws the competitiveness of low-carbon firms attention not only to the “losers” of carbon and increasing the costs of emissions-in- pricing, but also the “winners”. The description tensive activities. also makes a clear link between carbon pricing and the “big picture” issue of structural trans- formation of the economy. Explaining carbon tax TABLE C.2 Examples of carbon tax messaging from other sources Source Description Commentary Government of A carbon tax is usually defined as a This description refers to the most common British Columbia: tax based on GHG emissions generated form of carbon tax—one imposed on fossil 2008 Budget Fiscal from the burning of fossil fuels within a fuels. It emphasizes the environmental im - Plan 123 jurisdiction. It puts a price on each ton of pacts expected from burning fossil fuels while GHG emitted, sending a price signal that also emphasizing the market reaction. will, over time, elicit a powerful market response across the entire economy, resulting in reduced emissions. National Treasury, [A] Carbon tax seeks to give effect to As with some of the descriptions of carbon Republic of South the polluter pays principle by ensuring pricing given above, this explanation refers to Africa: Media that the real cost of GHG emissions the polluter pays principle and focuses on ad- statement124 to the environment and society are dressing the social and environmental costs explicitly incorporated into the prices of of pollution. In contrast to the description carbon-intensive production activities. provided by British Columbia, this descrip - tion focuses on pollution from carbon-inten - sive production, which reflects the design of South Africa’s carbon tax. 90 Guide to communicating carbon pricing Explaining emissions trading TABLE C.3 Examples of emissions trading messaging from other sources Source Description Commentary EU Commission: EU The system works by putting a limit on This description boils down the main com - ETS factsheet125 overall emissions from covered instal- ponents of emissions trading in a digestible lations which are reduced each year. way, while also emphasizing the flexibility and Within this limit, companies can buy and cost-effectiveness of the mechanism. It also sell emission allowances as needed. This presents the two main terms for emissions ‘cap and trade’ approach gives compa- trading (ETS and cap and trade) in a way that nies the flexibility they need to cut their allows the reader to understand that they emissions in the most cost-effective way. refer to the same system, and the logic be - hind each name. Sierra Club: RGGI RGGI reduces CO2 emissions by establish- Without clarifying the meaning of the two factsheet126 ing a regional cap on the amount of CO2 basic notions of emissions trading (cap and that power plants can emit through the allowance), this fact sheet provides a techni- issuance of a limited number of tradable cal and business-friendly definition of an ETS, CO2 allowances. This approach allows making it less accessible to the general pub - market forces to determine the most lic. In an apparent attempt to secure broad economic means of reducing emissions acceptance within the energy industry, it also and creates market certainty needed puts an emphasis on the scope of the scheme to drive long-term investments in clean by mentioning three times that it only applies energy. to CO2 emissions. Institute for Local The ‘cap’ creates a limit on carbon diox- This is a practical, impartial, and easy-to- Government: Cap ide equivalent emissions, while a corre- use description of how emission trading and Trade: Invest- sponding number of allowances within works, and it explicitly aims to raise aware - ing in California the cap can be ‘traded.’ The allowances ness among Californian communities. There Communities127 are purchased by utilities and businesses is equal consideration for both positive and at quarterly auctions. Over time, as the negative impacts on competitiveness and cap lowers, businesses that aggressively costs in the internal market. reduce emissions can trade their surplus allowances to firms that find it more expensive to reduce emissions. Guide to communicating carbon pricing 91 APPENDIX D Carbon pricing narratives for testing Each narrative outlined in table D.1 is based on a a discourse analysis of current communications. In theme, which is typically based on a shared value. It particular, the language draws on testing in Canada then provides some sample text exploring that theme carried out by Dr. Louise Comeau and Climate Out- and contains keywords that reflect and frame the reach.128 As is the case with all communications re - theme. This text should not be simply “cut and pasted” search, it is strongly dependent on North American into communication material. These narratives pro - sources, so it is possible that there may be narratives vide the raw material from which the design process that are specific to new audiences and cultural con- should select, prioritize, test with target audiences, texts that are missing from this list. Based on this and then refine for the national context or specific available evidence, the narratives have been present- audiences. ed in order of effectiveness, with the most effective placed at the top of the table. Choosing the core frame and narrative is an important decision that is dependent on a strategic evaluation Wider policy implications of the relative importance of appealing to different constituencies. There will not be any framing or core The carbon pricing policy and the narratives that are narrative that works across all audiences. There will presented should be consistent and coherent. We always be support from some sectors and opposition suggest aspects of policy (in particular, regarding the from others for any carbon pricing policy, however distribution of revenue) that would be consistent with well it is presented. the narrative, or that would potentially conflict with the narrative and undermine trust. A note on sources The language used in table D.1 has been selected from a wide range of sources: from surveys, focus groups, structured interviews conducted for this Guide, and 92 Guide to communicating carbon pricing TABLE D.1 Carbon pricing narratives for testing Narrative Keywords Commentary Fairness Carbon pricing is a fair way to share Fair Applying revenue in accordance with the theme of responsibility for the carbon pollution fairness might, depending on the circumstances, Just that causes climate change and to include support for low-income groups, and work- reward the companies that are most Balanced ers communities transitioning out of high-carbon efficient and pollute the least. It's not Reward industries. However, the provision of benefits, such fair that heavy energy users can dump as tax cuts for affluent groups or major business Punish their carbon pollution in the air we concessions might undermine the theme. all breathe. Polluters should be held accountable and should pay for the This narrative has consistently performed strongest pollution that they force all of us to live in testing across Canada and aligns with people’s with. sense of natural justice. It has been found to be the most effective narrative in bridging different political values and is especially effective for people with conservative values. Makes sense, balance Pricing carbon pollution makes sense. Sense Communication of carbon pricing often begins with The more we pollute, the more we an attempt to simplify complex economic theory. Common-sense ought to pay. It’s a fair way to hold This narrative seeks to democratize the concept polluters accountable. It makes busi- Flexible around simple and accessible values. It works par- nesses that produce the most pollution Balanced ticularly well when communicating carbon taxes as pay more. It rewards businesses that these are generally simpler than emissions trading are efficient and use energy well by systems. This narrative explores frames around ensuring they pay less. Carbon pricing balance. strikes the right balance. It allows us to do what’s right for the environment It is important that the policy is consistent with and encourages us to shift to cleaner this framing. It would be undermined by perceived and healthier renewable energy. It is favoring of any one interest group over another, a flexible and allows businesses to invest complex structure, convoluted technical language, in the best solutions at the lowest or inaccessible expert communicators. possible cost. And it unleashes the creativity of business to develop new technologies. Market failure There has been a real market failure Market This language is already favored by economists and around carbon pollution. We need to policy experts, and is effective in some countries, Signal put a price on carbon because this e.g. Sweden.129 However, it requires trust in govern - sends a market signal to consumers Price ment judgment or expert opinions as the message and energy users that they should shift Efficient becomes ineffective if they are not trusted. to alternatives, such as more efficient manufacturing equipment, vehicles, appliances, or renewable energy like wind and solar power. Guide to communicating carbon pricing 93 Tax reform We need to pay for our government ser- Tax To ensure consistency, this narrative must be vices. It’s common-sense that a good built around clear and well-considered use of the Reform tax policy should also discourage the revenues or reducing tax in other areas, especially things that are bad, not the things we Balance related to climate change. It may be combined with wish to encourage. This policy reform Simple other forms of tax reform, simplification, or remov- creates a new balance in our taxation, al of subsidies. It will be undermined if the policy Sensible encouraging people and businesses to provides inconsistent tax concessions for polluters. shift to new, clean technologies. Common-sense The disadvantage is that mobilizing the tax frame Modern may reinforce resistance; this finding has been supported by polling in North America. Reduce regulation We need a strong and effective Sensible This narrative may be effective with audiences—es- environmental policy. Currently, busi- pecially those with libertarian, free-market liberal Simple nesses struggle under a high burden views—that wish to reduce the role of government, of ineffective rules and regulations. Balanced or support markets as an instrument of choice. For This policy reduces government in- Effective consistency, it would need to be supported by the terference and provides a simple and removal of ineffective regulation and other regula - Choice effective framework that will create a tion, including subsidies, and be free of concessions level playing field to reward enterprise Level playing to polluting industries. This narrative has been and efficiency by allowing businesses field proposed through consultation for this Guide but to make their own decisions about has not, as far as we know, been tested with the where and how to invest. wider public. Reducing pollution Our dirty, polluted air is affecting our Clean/dirty To achieve consistency this narrative must include health, especially of the most vulnera- the main sources of air pollution, and especially Fresh air ble people—the young and the elderly. those that are perceived to be the main sources of And the pollution from burning dirty Health pollution, such as trucks and large vehicles. It may fuels is even changing our climate. This Children and also need to incorporate other pollutants (espe - policy will address all aspects of air elderly cially sulfur dioxide and nitrogen oxides), alongside pollution, and encourage new, clean GHGs, in a single package. A consistent use of Stop pollution technologies—especially pollution-free revenue would be supporting/ subsidizing clean power stations and electric transport. Comprehensive technologies, especially transport and power gener- ation. The danger with this framing is that it misses or excludes these primary sources, or provides a basis for opponents to make the challenge that CO2 is not an air pollutant and should be excluded. 94 Guide to communicating carbon pricing Additional narratives TABLE D.2 Additional narratives Narrative Keywords Shift to renewables All around the world countries are shifting to new, cleaner forms of energy. Carbon pricing Clean will support that shift, transforming our energy and cleaning the air we breathe. Renewable Renew energy means renewing our manufacturing and revitalizing our careers. We can protect the environment and create jobs at the same time—so why hesitate? Carbon pricing works We are committed to strong and effective environmental rules. And we want policies that work. Efficient Carbon pricing is the best policy because, as economists agree, it really works. It delivers results Effective quickly, effectively, and at a far lower cost than other regulations. Productive Reform Low-cost Honest and simple A carbon tax is honest and efficient: the more you pollute, the more you pay. It’s as simple as Honest that. It's an old-fashioned, straightforward solution with the minimum of red tape or interfer- Simple ence. Because it works through the existing tax system, it doesn’t need any new bureaucracy. There are no loopholes or breaks for big business. For all these reasons, a carbon tax is the Efficient best option: it is simple, stable, predictable, and rewards those that are the most efficient and pollute the least. Honest and simple The air we breathe belongs to everybody. And climate change is affecting everybody. So it is Fair only fair that we all contribute to making a change. We try to do the right thing by recycling or Shared buying environmentally friendly products. A carbon tax is one way to make sure we all show the same level of responsibility for reducing the pollution we put into our air. Responsibility Nothing new Putting a price on the things we want to phase out is hardly a new idea. [apply metaphors – for Common-sense example, a tax on smoking, drinking, a tax on leaded petrol…]. Back in the 1980s, we put an Nothing new additional tax on leaded gasoline to get consumers to shift to unleaded. Now we need to do the same with carbon pollution. Guide to communicating carbon pricing 95 APPENDIX E Managing counter-arguments The following table outlines some of the main arguments against carbon pricing and suggests some responses: TABLE E.1 Arguments against carbon pricing and suggested responses Thematic cluster / concerns Response Theoretical/ideological 1. Atmosphere and air is a “free” The treatment of the atmosphere as a “free space” has led our shared en - space available for all to use vironment into being used without limits. Carbon pricing makes polluters pay for the space they use, encouraging a more rational and smarter use. 2. Skepticism over climate change The overwhelming majority of climate scientists tell us that our climate is changing at an unprecedented rate and that human activity is the main cause of this change. Our country—like all other countries in the world—has signed up to the Paris Agreement, which obliges us to reduce GHG emissions. In addition to reducing GHG emissions and helping mitigate climate change, carbon pricing can lead to a range of other benefits, including reducing local pollution, increasing energy security, and raising revenue that can be used to fund important programs or reduce other taxes. 3. An unshared burden—why [Insert country] has already agreed to reduce its emissions as part of should I implement a politically the Paris Agreement. Carbon pricing is a cost-effective way to achieve risky carbon pricing initiative if that goal. Other countries without carbon pricing have tended to simply “country or company x” is not? adopt alternative policies for achieving their targets. 96 Guide to communicating carbon pricing Social justice 1. Carbon pricing is regressive Studies show that carbon prices are often progressive. In many countries, and hurts the poor the rich spend a higher portion of their income on fuel. Where regressive impacts are a risk, governments can use the revenue raised to avoid those impacts and even turn them into benefits for low-income families. 2. Carbon pricing provides Companies are already permitted to pollute. Carbon pricing makes them companies with a license pay for it. [Moreover, emissions trading puts a limit on how much they to pollute can pollute]. Political 1. Industry lobbying leads to Industry lobbying is a factor in environmental policymaking and can cap/allocation inflation [ETS] affect the design of almost any policy. It is up to governments to ensure or reduced rates or exemptions that the policy is designed so as to achieve its environmental goals. One [carbon taxes] of the benefits of carbon pricing is the simplicity of the price and/or cap, which aids transparency regarding the rules imposed on companies. 2. Limited need for carbon pricing Carbon pricing can reduce the costs of mitigation, enabling NDCs to because Nationally Determined become more ambitious. Contributions (NDCs) do not go far enough Availability/relevance of other policies 1. Renewable energy and energy Carbon pricing can work in synergy with renewable energy and energy efficiency policies are more efficiency policies. Importantly, these policies must be designed and effective implemented in an integrated way. 2. Fossil fuel subsidy reform Both carbon pricing and fossil fuel subsidy reform are ways of increasing is more urgent the price of polluting. They are very much compatible. 3. Carbon pricing is best suited While emissions trading does require relatively advanced institutional to high-income countries structures, carbon taxes can be designed to require very little additional with developed markets and administrative effort. What’s more, where they replace other taxes, systems of governance, not carbon taxes can even reduce overall administrative effort. low-income countries 4. Carbon pricing is inherently While carbon pricing does work best in sectors that respond to price unsuitable for economic incentives, the revenues from carbon pricing can be invested in making sectors that respond weakly to less-responsive sectors respond better—for example, by providing bet- price incentives (e.g. transport) ter public transport options. 5. Carbon pricing is a way for Research shows that, when designed well, carbon pricing can work just companies to avoid policies that as well as, or better than, other policies in reducing GHG emissions. more effectively reduce GHG emissions such as emission standards Guide to communicating carbon pricing 97 Economic growth, competitiveness, and leakage 1. Carbon pricing can impede While there is little evidence that carbon pricing has resulted in damage industry/private sector to industry to date, eventually it is inevitable that there will be some win - competitiveness and stymie ners and losers in the shift to a low-carbon economy. However, negative economic growth impacts in some sectors are usually compensated by growth in other, “greener” sectors, helping the country gain a competitive advantage in the economy of the future. This means that carbon pricing will often be either neutral or positive for the economy as a whole. 2. Industry/companies may There is no evidence of this happening to date. Carbon prices typically outsource in anticipation of only make up a very small share of companies’ overall costs, and deci- carbon pricing legislation, sions to outsource are usually driven by multiple drivers, including the resulting in unemployment availability of workforce, salary level, investment climate, closeness to customers, and availability of resources. 3. Carbon pricing can threaten Carbon pricing helps drive the development of indigenous renewable energy security energy, helping to ensure long-term energy security that is not subject to finite resources or imports from volatile states. 4. Carbon pricing takes away Carbon prices provide companies with an incentive to invest in low-car- money from companies that bon innovation, as doing so will allow them to avoid costs. In some carbon could have invested in prices, the revenue collected is recycled back to low-carbon investments low-carbon innovation through subsidies or green funds. 5. Carbon pricing provides an The growth of many industries has been supported by government unfair advantage to “green” policies. Carbon pricing helps level the playing field so that companies sectors over traditional that produce goods and services without harming the environment can industries compete and grow. Uncertainty/weaknesses 1. Unclear climate change Like all emissions mitigation policies, the effectiveness of carbon prices mitigation impact and depends on their design. Evidence shows that a well-designed carbon effectiveness price can be highly effective in reducing emissions. 2. Carbon pricing not effective While carbon pricing itself does not reduce local pollution directly, one of in reducing local pollution its key co-benefits is reducing local pollution through disincentivizing the use of the fossil fuels that produce this pollution. What’s more, several countries have combined carbon prices with prices specifically directed at local pollutants. 3. Carbon pricing is a political Overall, carbon prices have proven to be more durable than most poli- construct and can change on cies, and indeed all the first carbon prices introduced in the early 1990s a political whim, leading to are still in place. Politicians can increase the regulatory certainty around regulatory uncertainty carbon prices by committing to long-term (price or cap) trajectories and embedding carbon prices within broader development, economic, and energy policy. “Side-effects” of carbon pricing 1. Carbon pricing can prolong the Setting a long-term, predictable carbon price can help avoid carbon lock- lock-in effects of fossil fuel based in by providing a clear price signal that makes it obvious that high-carbon energy systems, further delaying investments will not be profitable in the future. the low-carbon energy transition 98 Guide to communicating carbon pricing References 1. Inchauste, G; Victor, DG. 2017. The political economy of energy subsidy reform (English). Direction in development. Washington, D.C: World Bank Group. http://documents.worldbank.org/curated/en/745311489054655283/The-political- economy-of-energy-subsidy-reform 2. Lachapelle, E. 2018. “Communicating about Carbon Taxes and Emissions Trading Programs.” In The Oxford Encyclopedia of Climate Change Communication. New York: OUP. 3. In developing this Guide, a survey of government representatives in countries considering developing or implementing a car- bon price was conducted. 75 percent of respondents rated this objective as “extremely important”, while a further 17 percent rated it as “somewhat important”. In separate surveys, also carried out for this Guide, a majority of businesses and civil society organizations also rated this as an important objective of their communications on carbon pricing. 4. Rivers, N., Schaufele, B. 2012. “Carbon Tax Salience and Gasoline Demand.” Working Paper #1211E, Department of Economics, Faculty of Social Sciences, University of Ottawa. https://socialsciences.uottawa.ca/economics/sites/socialsciences.uottawa. ca.economics/files/1211e.pdf; Martin, R., de Preux, L. B., Wagner, U. J. 2011 “The Impacts of the Climate Change Levy on Manu - facturing: Evidence from Microdata.” NBER Working Paper No. 17446, NBER. https://www.nber.org/papers/w17446 5. 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Interview with Susanne Akerfeldt, Swedish Ministry of Finance, April 24, 2018. 15. See, for example, California Environmental Protection Agency. “California Climate Investments to Benefit Disadvantaged Communities,” Accessed November 6, 2018. https://calepa.ca.gov/envjustice/ghginvest/ 16. Scokpol, Theda. 2013. “Naming the Problem, What It Will Take to Counter Extremism and Engage Americans in the Fight against Global Warming”. Symposium. The politics of America’s fight against global warming. Columbia School of Journalism, Harvard University. Massachusetts, February 14, 2013. https://scholars.org/sites/scholars/files/skocpol_captrade_report_ jan - uary_2013_0.pdf 17. Abbott, T. “Tony Abbott: Daring to Doubt.” 2017 Annual GWPF Lecture. The Global Warming Policy Foundation, London, UK, October 9, 2017. https://www.thegwpf.org/tony-abbott-daring-to-doubt/ 18. 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For example, in 2009 a £6 million British climate change advertising campaign was launched without enough time to test the campaign. It provoked a strong debate, with 200 complaints to the U.K.’s Advertising Standards Authority. Because these reactions had not been anticipated the government was unable to defend itself and was forced to close the campaign. Most of the complaints were subsequently rejected by the Authority. https://www.theguardian.com/media/2009/oct/16/ complaints-government-climate-change-ad 27. Marshall, G., Bennett, A. and Clarke, J. (2018). Communicating climate change and energy in Alberta - Alberta Narratives Proj- ect. Oxford: Climate Outreach 28. Center for Research on Environmental Decisions. 2009. The Psychology of Climate Change Communication: A Guide for Sci - entists, Journalists, Educators, Political Aides, and the Interested Public. New York: Center for Research on Environmental Decisions. http://guide.cred.columbia.edu/pdfs/CREDguide_full-res.pdf 29. 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Talking Climate: From Research to Practice in Public Engagement. Cham, Switzerland: Palgrave Macmillan. Corner, A. 2013. A new conversation with the centre-right about climate change: Values, frames and narratives. Oxford: Climate Outreach. https://climateoutreach.org/resources/a-new-conversation-with-the-centre-right-about-climate-change/ Corner, A., Shaw, C., and Clarke, J. 2018. Principles for effective communication and public engagement on climate change: A Handbook for IPCC authors. Oxford: Climate Outreach. https://wg1.ipcc.ch/AR6/documents/Climate-Outreach-IPCC-communica - tions-handbook.pdf Corner, A., Webster, R., and Teriete, C. 2015. Climate Visuals: Seven principles for visual climate change communication (based on international social research). Oxford: Climate Outreach. https://www.climatevisuals.org/sites/default/files/2018-03/Climate-Visu - als-Report-Seven-principles-for-visual-climate-change-communication.pdf Center for Research on Environmental Decisions. 2009. The Psychology of Climate Change Communication: A Guide for Scientists, Journalists, Educators, Political Aides, and the Interested Public. New York: Center for Research on Environmental Decisions. http:// guide.cred.columbia.edu/pdfs/CREDguide_full-res.pdf Carbon Pricing Leadership Coalition. 2018. Leadership Report 2017–2018. Washington, D.C.: World Bank. https://static1.square - space.com/static/54ff9c5ce4b0a53decccfb4c/t/5ad77d751ae6cf8659293599/1524071799939/CPLC_LeadershipReport2018_Up - date_Web.pdf Carbon Pricing Leadership Coalition. 2017. Report of the High-Level Commission on Carbon Prices. Washington, D.C.: World Bank. https://static1.squarespace.com/static/54ff9c5ce4b0a53decccfb4c/t/59244eed17bffc0ac256cf16/1495551740633/CarbonPric- ing_Final_May29.pdf Inchauste, G. and Victor, D. G. (editors). 2017. The Political Economy of Energy Subsidy Reform. Directions in Development. Washing- ton, D.C.: World Bank. https://openknowledge.worldbank.org/handle/10986/26216 Klenert, D. et al. 2017. “Making Carbon Pricing Work”. INET Oxford Working Paper no. 2017-11. OECD and World Bank. 2015. The FASTER Principles for Successful Carbon Pricing: An Approach Based on Initial Experience. Wash - ington, D.C.: World Bank. https://www.oecd.org/environment/tools-evaluation/FASTER-carbonpricing.%20pdf. Partnership for Market Readiness (PMR.) 2017. Carbon Tax Guide: A Handbook for Policy Makers. Washington, D.C.: World Bank. https://openknowledge.worldbank.org/handle/10986/26300 Partnership for Market Readiness (PMR) and International Carbon Action Partnership (ICAP). 2016. Emissions Trading in Practice: a Handbook on Design and Implementation. Washington, D.C.: World Bank. https://openknowledge.worldbank.org/ handle/10986/23874 Sightline Institute. 2013, “Talking Carbon Taxes, Free Enterprise Style”. https://www.sightline.org/2013/04/26/talking-carbon-taxes- free-enterprise-style/ World Bank and Ecofys. 2018. State and Trends of Carbon Pricing 2018 (May). Washington, D.C.: World Bank. https://openknowledge. worldbank.org/bitstream/handle/10986/29687/9781464812927.pdf?sequence=5&isAllowed=y Guide to communicating carbon pricing 103