A Proposal to Scale Up Global Carbon Pricing

By Vitor Gaspar and Ian Parry عربي, 中文, Español, Français, 日本語, Português, Русский Between one quarter and one half. That’s how much carbon dioxide (CO2) and other greenhouse gases must fall over the next decade to keep alive the goal of restricting global warming to below 2°C. The fastest and most practical way to achieve this is by creating an international carbon price floor arrangement. Climate change presents huge risks to the functioning of the world’s economies. This matters to the IMF because climate change presents huge risks to the functioning of the world’s economies. The right climate policies can address these risks and also bring tremendous opportunities for transformative investments, economic growth, and green jobs—so much so that our Board recently approved proposals to include climate change in our regular country economic surveillance and our financial stability assessment program. At the heart of our policy discussions with member countries is carbon pricing—now widely accepted as the most important policy tool to achieve the drastic cuts to emissions we need. By making polluting energy sources more expensive than clean sources, carbon pricing provides incentives to improve energy efficiency and to re-direct innovation efforts towards green technologies. Carbon pricing needs to be supported by a broader package of … Continue reading A Proposal to Scale Up Global Carbon Pricing