IMF chief makes the case for carbon pricing as ‘writing on the wall’ for oil and gas
IMF chief makes the case for carbon pricing as ‘writing on the wall’ for oil and gas

Kristalina Georgieva, managing director of the International Monetary Fund, speaks throughout the Singapore FinTech Festival in Singapore, on Wednesday, Nov. 15, 2023.

Bloomberg | Bloomberg | Getty Images

Dubai, UNITED ARAB EMIRATES — The head of the International Monetary Fund on Sunday underlined the case for carbon pricing at the COP28 local weather summit, saying that the oil and gas business acknowledges “the writing on the wall.”

A protracted-time proponent of carbon pricing, IMF Managing Director Kristalina Georgieva mentioned this method creates an incentive for polluters to quickly decarbonize.

Carbon pricing ascertains the price that an organization must pay for its planet-warming emissions and is widely regarded as the most cost-effective and versatile solution to minimize such air pollution.

The IMF recently raised its common value forecast to $85 a ton by the finish of the decade, up from a earlier forecast of $75. Underlining the scale of the problem, Georgieva mentioned the present common value is round $20 per ton.

“For people who have adopted a carbon value, how can we get massive emitters to simply accept that we have to speed up decarbonization?” Georgieva advised CNBC’s Dan Murphy at the COP28 convention.

“Well, two issues. One, with no carbon value, it will not occur quick sufficient. So, we now have to maneuver to that incentive,” she mentioned.

“Two, Mother Nature helps us as a result of international locations wealthy and poor are already experiencing the devastating pressure of local weather change.”

I need to inform everyone who’s keen to hear {that a} carbon value has confirmed to work.

Kristalina Georgieva

IMF Managing Director

Her feedback come as policymakers and enterprise leaders convene in Dubai for the U.N.’s two-week lengthy local weather summit, which is scheduled to finish on Dec. 12.

The convention is a pivotal alternative to speed up local weather motion, at a time when the world is on track to record its hottest year on record and as extreme weather events take their toll throughout the globe.

For the IMF chief, COP28 marks an vital alternative for international locations to reassess insurance policies that incentivize the use of fossil fuels. She careworn that authorities subsidies for coal, oil and gas hit $1.3 trillion final 12 months.

“Now we now have to drag this regularly and substitute with the different a part of the incentive, which is pricing. I need to inform everyone who’s keen to hear {that a} carbon value has [been] confirmed to work,” Georgieva mentioned, including that current schemes — such as the EU’s Emissions Trading System — have registered a speedy discount of emissions.

“Two, it generates revenues. The identical European Union obtained 175 billion euros ($191 billion) collected from [a] carbon value,” she mentioned.

“Three, it may be truthful. It is truthful first, as a result of the extra you pollute, the extra you pay, and the much less you pollute, the much less you pay. But additionally, many international locations [can] take a few of this cash and give it again, particularly to the susceptible folks.”

Asked about the position of the oil and gas business at COP28 and methods to get Big Oil on facet with carbon pricing, Georgieva mentioned, “One of the excellent news that comes from analysis is that we’re going to see the peak of oil and gas on this decade. Consumption is then going to regularly happening.”

“One of the nice information from COP is a dedication to triple renewables in power inside the subsequent years. Where the energy of COP has come is by mobilizing the voices of individuals and that’s already occurring. I can not consider any business that’s keen to be the enemy of the folks,” she continued.

“I believe that oil and gas is seeing the writing on the wall. We see a lot of the oil-producing international locations diversifying fairly quickly and we additionally see an funding coming from cash generated from oil into renewables [at] scale.”

Source link

Leave a Reply

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