IMF proposes setting up of an international carbon price floor

The International Monetary Fund (IMF) has proposed to set up an international carbon price floor to help limit global warming and achieve the transition toward low carbon growth over this decade.

“Gradually increasing price on carbon encourages innovation and transition to renewable energy, clean mobility, and low carbon technologies,” IMF Managing Director Kristalina Georgieva said on Friday.

“Limiting global warming to 1.5 to 2 degrees will require emissions to be cut by a quarter to a half by 2030, and this is unlikely to happen without measures equivalent to a global carbon price of around $75 per ton by the end of this decade,” she said, noting that the current global average emissions price is only $3 per ton.