The multilateral agency said carbon pricing is now widely accepted as the main policy tool to achieve the drastic emissions reductions needed to limit global warming to two degrees Celsius by 2050.

WASHINGTON, United States – The IMF released a report on Friday calling on the world’s top polluters to introduce an international carbon floor, arguing that it offers a “realistic perspective” on tackling climate change .

The multilateral agency said carbon pricing is now widely accepted as the main policy tool to achieve the drastic emissions reductions needed to limit global warming to two degrees Celsius by 2050.

But right now, four-fifths of emissions remain unpaid, and the global average price of carbon is just $ 3 per tonne – well below what it takes to incentivize energy efficiency and redirect innovation to green technologies.

The report modeled various scenarios and said a three-tier price floor of 75 US dollars r, $ 50 and $ 25 per tonne for advanced, high-income and low-income emerging markets, respectively, could help reduce emissions by 23 percent by 2030.

In this example, only six participants would be involved: Canada, China, the European Union, India, the United Kingdom, and the United States.

The report suggested that the program could be introduced by the G20 before expanding to others.

The original goal would be to meet the Intergovernmental Panel on Climate Change’s goal of reducing emissions by a quarter to a half by the end of this decade.

“Simultaneous measures by large emitters to increase carbon pricing would enable collective action on climate change while decisively addressing competitiveness concerns, “said IMF Finance Director Victor Gaspar and co-author Ian Parry.

” There is no time to waste doing this To make agreement. Let’s imagine we see 2030. Let’s make sure we don’t look back to 2021 only to regret the missed opportunity to take effective action, “they added.

Ultimately, the scheme would look like an expanded version of one Canadian law that obliges provinces and territories to introduce a minimum price for CO2, which will gradually increase from CAN $ 10 per tonne in 2018 to CAN $ 50 in 2022 and to CAN $ 170 in 2030.

Ref: https://ewn.co.za