Economists urge for strong price to slash emissions
BERLIN: Economists called yesterday on the international community to price carbon at up to US$100 (RM427) a tonne by 2030, saying this was “indispensable” in the fight to slash emissions.
“A strong and predictable carbon-price trajectory provides a powerful signal to individuals and firms that the future is low carbon, inducing the changes needed in global investment, production and consumption patterns,” said the commission of leading economists headed by Joseph Stiglitz and Nicholas Stern.
Countries should set a target of US$40 to US$80 a tonne of CO2 by 2020, and of US$50 to US$100 a tonne by 2030, they said.
The idea is that the cost will force companies and individuals to turn to more climate friendly options, while at the same time raising funds for states to invest in cleaner infrastructure.
Carbon trading mechanisms are in place in a handful of countries and in the European Union.
The EU fixes emissions reduction obligations and allows companies or countries to trade quotas, buying or selling depending on whether they have surpassed or remain inside set limits.
But the implementation of the landmark 2015 Paris deal to curb global warming has hit a major roadblock as US President Donald Trump said he would only decide this week whether the US would abide by the deal. AFP