WASHINGTON (Pakistan Point News / Sputnik - 23rd April, 2021) The global price of carbon needs to rise to $75 a ton over the next decade from the current rate of around $2 to ensure greater commitment from companies and nations in reducing their carbon footprint, IMF Managing Director Kristalina Georgieva said Thursday.
Addressing the Leaders Climate Summit of Earth Day 2021, Georgeiva said carbon pricing was gaining momentum and many businesses now used a shadow carbon price in their models. "Over 60 pricing schemes have been implemented. But the average global price is currently $2 a ton, and needs to rise to $75 a ton by 2030 to curb emissions in line with the goals of the Paris Agreement," she said.
Georgieva also proposed a monthly schedule for carbon price hikes to help corporations and countries get used to the higher costs and compel them to make the changes necessary to better protect the environment.
"Our analysis shows that without it (carbon pricing), we will not reach our climate standardization goals," Georgieva said. "We need an international carbon price (schedule) each month. This price floor has to be pragmatic and equitable with differentiated pricing for countries and different levels of economic development so that it can be implemented."
President Joe Biden, who hosted the Leaders Climate Summit, said the United States will double in the next three years the public climate financing target set during the Obama years to help poor nations reduce� their greenhouse gas emissions.
Biden also said that by 2024, the United States would triple financing of climate adaptation, which focuses on adjustments to current or expected climate change. The White House said that Biden's Democrat Party will work with its Republican rival in Congress to enact the needed legislation for this.
