A Strategy for International Climate Negotiations

For International Climate Negotiations

World Bank and IMF Call for Global Carbon Pricing

In a joint post, the heads of the IMF and the World Bank have called for some form of global carbon pricing: “The transition to a cleaner future will require both government action and the right incentives for the private sector. At the center should be a strong public policy that puts a price on carbon pollution.”

The IMF leans more towards the use of carbon taxes and the Bank leans toward the use of cap-and-trade at the national level. But both seem to call for something like a single global price that would guide these policies. However, it is perfectly clear that a global commitment to a carbon price would be ideal for achieving their stated objectives.