Tuesday, June 29, 2021

Global Carbon Pricing

Latest article from the IMF Blog. Carbon price floor arrangement. Carbon taxes or emission trading system.

Excerpt:

"An illustrative example shows that reinforcing Paris Agreement pledges with a three-tier price floor among just six participants (Canada, China, European Union, India, United Kingdom, United States) with prices of $75, $50, and $25 for advanced, high, and low-income emerging markets, respectively and in addition to current policies, could help achieve a 23 percent reduction in global emissions below baseline by 2030. This is enough to bring emissions in line with keeping global warming below 2°C."


Image credit - IMF. 

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