Global carbon taxes need to go up drastically to avoid environmental catastrophe, an IMF report says. The move would significantly increase the cost of fossil fuels, but the report's authors say it can be done.
Image: Reuters/AAP Image/R. Varghese
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The International Monetary Fund (IMF) says a $75-(€68-)per-ton carbon tax by 2030 would have the greatest effect in reducing carbon emissions and staving off global warming.
"Carbon taxes are the most powerful and efficient tools but only if they are implemented in a fair and growth-friendly way," an IMF researcher wrote in a blog post.
Carbon taxes raise the cost of fossil fuels and encourage people and business to switch to greener energy source, the agency said in a report released Thursday ahead of annual IMF and World Bank meetings next week.
The cost
The current global average is $2 per ton. Last year, France scrapped plans to raise carbon taxes above $50 per ton after violent protesting broke out.
A $75-per-ton carbon tax rate would drive the price of coal up over 200% above baseline levels in 2030. Electricity and gas prices would also rise, between 5% and 15% depending on the country.
The IMF called this "well within the bounds of price fluctuations experienced during the past few decades.”
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A coordinated effort to increase the carbon tax to $75 by 2030 could be possible if the largest emitters in the Group of 20 cooperate, the report says.
Advanced economies could implement higher taxes, or provide greater assistance to developing economies in exchange for a commitment to ambitious carbon reduction goals.
The hike would motivate businesses and consumers to move to cheaper green energy sources. Governments could use tax revenue to assist poorer households and workers disproportionately affected by the switch.
The payoff
The benefits would more than offset the costs. The carbon tax could prevent 725,000 premature deaths due to air pollution by 2030, mainly in China.
Current carbon emission efforts aren't enough to limit the rise in global temperatures to the goal of no more than 2 degrees Celsius (3.6 degree Fahrenheit) above pre-industrial levels as laid out in the 2015 Paris Accord. Current initiatives correspond with a warming of 3 degrees Celsius.
Last month, UN climate researchers warned that rivers will run dry and cities will disappear into the sea if global warming is not brought under control.
Earlier this week, the environmental activist group Extinction Rebellion organized global demonstrations in 60 cities to call for radical action on global warming. Police arrested hundreds of protesters for disrupting traffic and other public spaces.
Extinction Rebellion protests go global
The activist group organized worldwide protests on Monday to force radical action on climate change. Police arrested hundreds of protesters for disrupting traffic or violating bans on demonstrations.
Image: picture-alliance/PA Wire/V. Jones
London, UK
Police arrested 217 people in London on Monday. Extinction Rebellion protesters blocked traffic and glued themselves to cars. Sarah Lasenby, an 81-year-old retired social worker among the arrested, told the Associated Press, "It is imperative the government should take serious actions and put pressure on other states and global powers to radically reduce the use of fossil fuels."
Image: picture-alliance/AP/J. Brady
New York City, US
Protesters in New York City doused the famous statue of the bull near Wall Street with blood and staged a "die-in" in front of the New York Stock Exchange. Police arrested around a dozen demonstrators.
Image: Reuters/M. Segar
Amsterdam, The Netherlands
More than 100 people were arrested in Amsterdam after blocking a road in front of the Rijksmuseum. The city had banned the activists from protesting there, but demonstrators went ahead with the protest anyway. One poster read, "SORRY that we blocked the road, but this is an emergency."
Image: Imago-Images/Hollandse Hoogte/S. Joosten
Sydney, Australia
Hundreds of people staged a sit-in on a busy road in Sydney before the police began making arrests. Activist Jane Morton told AFP, "we have tried petitions, lobbying and marches, and now time is running out." Australia's conservative government has been reluctant to improve environmental policy, choosing instead to support the continued exporting of coal.
Image: Getty Images/L. Maree Williams
Dublin, Ireland
With a march through Dublin, Extinction Rebellion demonstrators in Ireland kicked off a "week of action" calling for a greater response to climate change. Protesters held a mock funeral for the planet and parked a pink yacht in front of Irish Prime Minister Leo Varadkar's office.
Image: picture-alliance/empics/N. Carson
Berlin, Germany
Around 1,000 protesters in Berlin blocked the Grosser Stern, a roundabout in the middle of the German capital. 300 more blocked a central square with couches, tables, chairs, and flower pots. In total, over 3,000 people joined demonstrations in Berlin. The protests come as the German government is on the brink of passing a climate bill that many have criticized for being too weak.
Image: picture-alliance/AP Photo/M. Sohn
Paris, France
In central Paris, around 1,000 protesters blocked the area around Chatalet. Some chained themselves to barrels while others swore to stay there overnight in makeshift tents. Protesters waved banners with slogans like "Burn capitalism, not petrol."
