The IMF has announced its recipe for achieving climate goals without ruining the economy: the three key points

The head of the International Monetary Fund Thursday urged Group of top 20 economies they will adopt a floor price for carbon, regulations on sustainable investments and support for developing countries, points that he identified as essential in the fight against climate change.

“Due to the urgency to act, we are proposing a minimum international carbon price among major emitters, like the G20. Attention to a minimum carbon price among a small group of large emitters could facilitate a deal, covering up to 80% of global emissions, ”he said. Kristalina Georgieva in your participation in the Climate Leaders Summit, a virtual conference organized by the United States, attended by 40 international leaders.

The director of the Fund underlined that this measure “Offers a fundamental signal in the markets” which makes it possible to “advance investments” in renewable energies, electric mobility and reforestation, among others.

A high carbon price is necessary to ensure that global emissions are reduced in line with the objectives of the Paris climate agreement in 2015he said, pointing out that more than 60 pricing plans have already been implemented.

the global average carbon price, now just 2 dollars per ton, must reach $ 75 per tonne by 2030 reduce emissions in line with these targets.

“Without a robust carbon price, we will not be able to meet our stabilization goals.“As part of the Paris Climate Agreement, he warned.

The resulting income, he said, could help consolidate “A just transition, which compensates households for price increases and makes it easier for businesses and workers to switch from low-carbon activities.”

Georgieva also said that climate change posed huge risks to economic development, but also offered “Incredible opportunities for transformative investments and green jobs.”

Obviously, Georgieva noted, the minimum price should be “pragmatic and fair, with different levels for countries at different levels of economic development”.

Regulate sustainable investments

Georgieva also requested a green taxonomy, i.e. a regulation for sustainable investments and a standardized report on climate-related financial risks to unlock billions of dollars in needed private investment.

These measures aim, in addition to standardizing the criteria, to supervise and control the major economic sectors in relation to sustainability, to allow investors easily distinguish between activities that contribute to the green economy and those that do not, and act accordingly.

Developing countries

Support for developing countries is also essential, Georgieva said, so that growth and carbon emissions can be decoupled.

The commitment of developed countries to help developing countries with compensation for $ 100 billion “is suitable for all of us”, He said.

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