Robust price on carbon needed to fight climate change: IMF Managing Director

IMF Managing Director Kristalina Georgieva speaks during an event at the World Bank in Washington, DC. Pic/AFP

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 stabilisation 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 tonne to $75 a tonne by 2030 to curb emissions in line with the goals of the Paris Agreement on climate change.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever