CNBC's Sam Meredith is reporting that COP28 IMF chief is making the case for carbon pricing as ‘writing on the wall’ for oil and gas.
IMF Managing Director Kristalina Georgieva advocated for carbon pricing at the COP28 climate summit, emphasizing its role in incentivizing rapid decarbonization. Georgieva, a long-time supporter of this approach, highlighted that carbon pricing effectively charges companies for their emissions, considered the most efficient way to reduce pollution. The IMF has increased its average price forecast to $85 per ton by 2030, up from $75, noting the current average is around $20 per ton. Georgieva stressed the urgency of this measure, citing the devastating effects of climate change already being experienced globally. The conference in Dubai, ending on December 12, presents a critical opportunity for advancing climate action in a year marked by extreme weather events and potentially record-high global temperatures. Georgieva also pointed out the need to reassess policies that favor fossil fuel use, mentioning that government subsidies for these fuels reached $1.3 trillion last year. She highlighted the success of existing schemes like the EU’s Emissions Trading System, which have significantly reduced emissions and generated substantial revenue. Georgieva believes that the oil and gas industry recognizes the inevitable shift towards renewable energy and notes that many oil-producing countries are rapidly diversifying their economies and investing in renewable energy sources.
Source: CNBC
https://www.cnbc.com/2023/12/03/imf-chief-makes-the-case-for-carbon-pricing-at-cop28-climate-talks.html
(This article was written with assistance from ChatGPT)
