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Five Things to Know About Carbon Pricing
Article

Five Things to Know About Carbon Pricing

Carbon pricing shows serious promise as a tool in the fight against climate change

IMF, 2021


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9

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Recommendation

Climate change is underway and getting worse, posing an indisputable environmental threat. Reducing the use of coal, gasoline and fuel oil is crucial, but piecemeal solutions won’t lead to successful outcomes, writes policy expert Ian Parry in this informative essay. He argues that carbon pricing could be just the solution, if implemented properly and consistently, that would accommodate both developed and developing economies.

Take-Aways

  • First, putting carbon pricing into effect is a relatively simple process, and second, it is advancing around the world.
  • Third, carbon pricing should be one part of a robust plan to fight climate change.
  • Fourth, global leaders need to coordinate in establishing a carbon price floor that, fifth, is suitable for all nations.

About the Author

Ian Parry serves as an expert in environmental fiscal policy at the IMF.