Increasing the price carbon is sold at is said to be the way to go according to a panel of the world’s most eminent economists with the revenue made going towards renewables such as solar.
By increasing the prices it is hoped that the warming of the globe can be kept below 2 degrees compared to the pre-industrial age.
This change needs to happen immediately according to the panel with the Great Barrier Reef being a local example of how coal and carbon is affecting us locally.
What needs to change to stop temperature increase?
In the report, it is estimated that globally applied carbon prices must reach $40 to $80 per metric tonne of CO2 emissions by 2020 and $50 to $100 per tonne by 2030.
There is added benefit to this move; it helps promote economic growth as well as UN’s Sustainable Development Goals (SDGs) for the year 2030.
“Climate policies, if well designed and implemented, are consistent with growth, development, and poverty reduction.”
“The transition to a low-carbon economy is potentially a powerful, attractive, and sustainable growth story, marked by higher resilience, more innovation, more livable cities, robust agriculture, and stronger ecosystems,” the report says.
Avenues to change
The report also talks of the different options available such as an Emissions Trading Scheme or a Carbon-Tax. Although not promoting one over the other the funds raised by these measures could be spent on both helping those disadvantaged by either carbon policy as well as being put back into renewable energy development.
Such moves would also work more effectively if paired with other strategies and could in theory drop the amount of tax needed to be paid by these companies according to the report.
“The temperature target remains achievable with lower near-term carbon prices if complemented by other policies and instruments and followed by higher carbon prices later. However, this may increase the aggregate cost of the transition.”
This is all coming at a time where there is growing uncertainty whether the US president Donald Trump’s administration will pull out of the landmark Paris agreement according to a speculative rumor online with country leaders expressing concern and anger over the potential move.
