What could we expect from the COP 26?
On the occasion of the Glasgow´s Climate Conference (@COP26), Kristalina Georgieva Managing Director of the International Monetary Fund (IMF), writes this article, based on the analysis of a new IMF’s report, that shows how “unchanged global policies will leave 2030 carbon emissions far higher than needed to keep 1.5º alive”. To reach the climate targets of the Paris agreement, she calls the policymakers attending COP26 to increase the ambition of national pledges and CO2 emissions reductions, and additionally, among other initiatives, she proposes an international carbon price floor.
- There is a gap between the climate change goals and the policy action required, to achieve the emissions reduction needed to contain global warming: In fact, current policies “will leave 2030 carbon emissions far higher than needed to keep 1.5 alive.” Therefore, it will be required an extra reduction of CO2 emissions by 55 percent below baseline levels or by 30 percent to meet the 2 degrees Celsius objective.
- These further reductions are affordable to the economy: For instance, according to IMF´s estimates “to put global emissions within range of a 2 degrees target would cost 0.2 to 1.2 percent of GDP, with the biggest burden falling on richer countries.
- $100 billion per year in finance to low-income countries from 2020 onward: to support developing countries in reducing emissions and adapting to climate change, “advanced economies must fulfill their commitment”, which is far from being met as of today.
- Carbon pricing: It is a critical price signal to redirect private investment to low carbon technologies and energy efficiency revenues from this carbon price could be used tor to reduce labor taxes, to strengthen social safety or increase green public investments, helping to boost the economy. According to IMF´s estimates, “a global carbon price exceeding $75 per ton would be needed by 2030, to keep warming below 2 degrees”.