IMF chief urges “robust” price on carbon to fight climate change

Washington, April 23 : International Monetary Fund (IMF) Managing Director Kristalina Georgieva called for a robust price on carbon to fight climate change, warning that without it, “we will not reach our climate stabilization goals”.
A robust price on carbon provides “a critical market signal” to producers and consumers in all sectors of the economy, Georgieva made the remarks at the Leaders Summit on Climate, virtually hosted by the United States on Thursday, Xinhua news agency reported.
“It has proven to advance investments in renewable energy, electric mobility, energy efficient buildings, reforestation and other climate friendly activities – with positive impact on growth and jobs, while reducing carbon emissions,” Georgieva said.
“Carbon revenues can also help secure a just transition, compensating households for price increases and helping businesses and workers move from high to low carbon intensity activities,” she continued.
According to IMF analysis, a mix of steadily rising carbon prices and green infrastructure investment could increase global gross domestic product (GDP) by more than 0.7 per cent per year over the next 15 years, and create millions of new jobs.
Noting that carbon pricing is gaining momentum, the IMF chief, however, said the average global price needs to rise from the current $2 a ton to $75 a ton by 2030 to curb emissions in line with the goals of the Paris Agreement on climate change.