Latest News

Exclusive – COP27: IMF chief says $75/ton carbon price needed by 2030


Exclusive – COP27: IMF chief says $75/ton carbon price needed by 2030 By Reuters

Breaking News


Economy 7 minutes ago (Nov 07, 2022 11:01)

© Reuters. FILE PHOTO: IMF Managing Director Kristalina Georgieva gestures during an interview with Reuters, in Berlin, Germany, October 26, 2022. REUTERS/Michele Tanntussi

By Simon Jessop, Seham Eloraby and Valerie Volcovici

SHARM EL-SHEIKH, Egypt (Reuters) – The price of carbon needs to average at least $75 a ton globally by the end of the decade for global climate goals to succeed, the head of the International Monetary Fund told Reuters.

Speaking on the sidelines of the COP27 climate talks in the Egyptian coastal resort town of Sharm el-Sheikh, IMF Managing Director Kristalina Georgieva said the pace of change in the real economy was still “way too slow”.

Recent analysis by the World Bank-affiliated group suggests the sum total of global national commitments on reducing climate-damaging emissions would see them fall just 11% by mid-century.

“Unless we price carbon predictably on a trajectory that gets us at least to (a) $75 average price per ton of carbon in 2030, we simply don’t create the incentive for businesses and consumers to shift,” she said.

While some regions such as the European Union already price carbon at above that level – the EU’s benchmark price is around 76 euros a tonne – other regions such as the U.S. state of California see carbon allowances selling for just under $30 per ton, while some have no price at all.

“The problem is that in many countries, not only in poor countries, across the world, the acceptance of pricing pollution is still low,” she said, a situation made worse by the current environment of high living costs.

But Georgieva said there were different routes a country could take. The world’s second biggest emitter, the United States, for example is unlikely to establish a national price on carbon given stiff political opposition to carbon taxes and ‘cap-and-trade’ systems.

“Just focus on equivalency. Whether the U.S. opts to impose a carbon cost through regulation and rebates rather than through tax or trade, that should not matter. What should matter is the price equivalent.”

She cited the IMF’s proposal for a carbon price floor and the proposal floated by Germany of a ‘carbon club’ of the world’s biggest economies, which would coordinate how members measure and price carbon emissions and enable cooperation in slashing emissions in the largest industrial sectors.

“Whether there would be a breakthrough at this COP or after, it has to be soon because we are virtually running out of time to be successful in this transition.”

Exclusive – COP27: IMF chief says $75/ton carbon price needed by 2030

Czech govt proposal for revenue cap on power producers hits nuclear hardestBy Reuters – Nov 07, 2022

By Jan Lopatka PRAGUE (Reuters) – The Czech industry ministry has proposed a cap on power producers’ revenue ranging from 70 to 230 euros per megawatt hour, depending on the…

Apple warns of lower iPhone shipments as COVID curbs hobble China plantBy Reuters – Nov 07, 2022

By Ben Blanchard and Jaiveer Shekhawat TAIPEI (Reuters) – Apple Inc (NASDAQ:AAPL) expects lower shipments of premium iPhone 14 models than previously anticipated following a…

Musk lays out Twitter mission, sparks debate on content accuracyBy Reuters – Nov 07, 2022

(Reuters) -Twitter Inc’s new CEO Elon Musk said on Sunday the social media platform’s mission was to become the most accurate source of information about the world, sparking…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Czech govt proposal for revenue cap on power producers hits nuclear hardest

Previous article

Polish energy companies should cut profits to near-zero, says PM

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News