Econ­o­mists urge for strong price to slash emis­sions

New Straits Times - - Business -

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

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