IMF proposes setting up of an int’l carbon price floor

| | Washington
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IMF proposes setting up of an int’l carbon price floor

Sunday, 20 June 2021 | IANS | Washington

The International Monetary Fund (IMF) has proposed to set up an international carbon price floor to help limit global warming and achieve the transition toward low carbon growth over this decade.

"Gradually increasing price on carbon encourages innovation and transition to renewable energy, clean mobility, and low carbon technologies," IMF Managing Director Kristalina Georgieva said on Friday.

"Limiting global warming to 1.5 to 2 degrees will require emissions to be cut by a quarter to a half by 2030, and this is unlikely to happen without measures equivalent to a global carbon price of around $75 per ton by the end of this decade," she said, noting that the current global average emissions price is only $3 per ton.

Noting that there has been progress, with over 60 national and subnational carbon pricing schemes around the world, Georgieva said "we have long way to go", reports Xinhua news agency.

Georgieva said IMF staff is publishing a proposal on Friday that sets out how an international carbon price floor can help achieve the goal of accelerating the transition to low carbon growth over the course of this decade.

She highlighted three crucial elements of such a price floor: it would focus on a small number of large emitters, such as some or all G20 countries.

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