If the world is to avert more than 1.5 degrees of warming by the end of this century, the global price of carbon must climb to at least $75 a tonne. This was stated by the Managing Director of the International Monetary Fund, Kristalina Georgieva, at an international climate conference in Egypt.
The green transformation of the global economy is proceeding too slowly, Georgieva said. To accelerate investment in green technologies and renewables, the global price of greenhouse gas emissions would have to increase significantly. In the case of carbon, the head of the International Monetary Fund is talking about a price of at least $75 per tonne by the end of this decade.
Prices per tonne of carbon are not globally uniform
“If we can’t get carbon prices to that level, we simply won’t get enough incentives for business and households to change their behaviour,” said Kristalina Georgieva. But in some countries and regions, the carbon price target has already been reached. This applies, for example, to the European Union. By contrast, in California the price is around $30 per tonne. “The problem is that in some countries, and not just poor ones, the valuation of air pollution is too low,” the IMF chief added.
