International Monetary Fund staff offered a minimal price for carbon emissions capable of slowing global warming next decade, Bloomberg writes. Thus, the organization determined the fee for the reluctance of individual countries to make their economy more “green”.
Posted on June 18, the document is still discussed by the Executive Director and Members of the IMF. In it, the Fund staff offered as a solution to a climate issue to introduce minimum carbon prices – different for each country, depending on the level of development. This proposal echoes the discussion on the minimum global corporate tax rate.
IMF proposes to establish for the USA, China, India, Great Britain, EU and Canada, the three-level minimum of carbon prices, where in tonne developed countries will be forced to pay 75 euros, and developing countries with high and low income – 50 and 25 dollars , respectively. Such measures should reduce emissions around the world by 23 percent on current averages and will contribute to the Paris Agreement on the deduction of temperature at least two degrees Celsius.
Focusing on a small number of major emission sources “will simplify negotiations and at the same time will cover a large percentage of global pollution by making an important step in reducing greenhouse gas emissions,” said the managerial manager of the IMF Crystalin Georgiev.
The head of the IMF believes that, although usually the issue of emission settlement is solved by taxation, the establishment of quotas on gas emissions will not be less efficient.
According to the document, the plan can stimulate a small further reduction in emissions, and if it is expanded and will include all the greatest twenty, it will cover 85 percent of the projected global carbon dioxide emissions.
IMF employees shared that at the moment about four fifths of world emissions are not paid, and the average price per ton is 3 dollars.