Here's why countries must cooperate on carbon prices

The document advocates for an international carbon price floor (ICPF) as a means to accelerate the green energy transition and limit global warming to below 2 degrees Celsius. It proposes a tiered pricing system based on income levels—$25 for low-income, $50 for middle-income, and $75 for high-income countries—to ensure fair allocation of transition costs. The author asserts that a simultaneous global implementation would eliminate the need for border carbon adjustments (BCAs) and have a minimal impact on global GDP by 2030.

• The International Monetary Fund (IMF) proposes an international carbon price floor (ICPF) as the only feasible option among those considered to prevent the planet from reaching dangerously high temperatures and to limit warming to below 2 degrees Celsius.
• The proposed ICPF uses a tiered pricing structure based on a country's economic development: $25 per ton of carbon for low-income countries, $50 for middle-income countries, and $75 for high-income countries.
• Implementing the ICPF is estimated to reduce global gross domestic product by 1.5 percent by 2030, though the impact on the world's poorest countries would be lower, at 0.6 percent.
• A simultaneous global ICPF would remove the necessity for high-income countries to implement border carbon adjustments (BCAs), as the combination of lower carbon prices and higher carbon intensity in middle- and low-income countries would offset competitiveness losses.

APA

Schwerhoff, J. C. F. J. G. (2022). Here's why countries must cooperate on carbon prices. World Economic Forum. https://www.weforum.org/stories/climate-action/countries-cooperate-carbon-prices/

Chicago

Schwerhoff, Jean Chateau, Florence Jaumotte, Gregor. Here's why countries must cooperate on carbon prices. World Economic Forum, 2022. https://www.weforum.org/stories/climate-action/countries-cooperate-carbon-prices/.

Wikipedia

{{cite press release |last1=Schwerhoff |first1=Jean Chateau, Florence Jaumotte, Gregor |title=Here's why countries must cooperate on carbon prices |publisher=World Economic Forum |date=1 June 2022 |url=https://www.weforum.org/stories/climate-action/countries-cooperate-carbon-prices/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{schwerhoff2022heres, author = {Schwerhoff, Jean Chateau, Florence Jaumotte, Gregor}, title = {{Here's why countries must cooperate on carbon prices}}, publisher = {World Economic Forum}, year = {2022}, month = jun, url = {https://www.weforum.org/stories/climate-action/countries-cooperate-carbon-prices/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }