DUBAI: The US should participate, rather than being a “loud opponent,” in carbon pricing, urged the director of the International Monetary Fund.
Addressing the Business and Philanthropy Climate Forum alongside the UN Climate Conference, Kristalina Georgieva affirmed that the US must not hinder the world from “moving in the right direction.” Instead, the country should explore the standards and regulatory fees it needs to implement carbon pricing into its economic model.
The director deemed carbon pricing a “wonderful instrument” due to its dual role in revenue generation and addressing inequality. The principle is straightforward: the more emissions one creates, the more one consumes, resulting in a proportional payment.
According to Georgieva, revenues generated from carbon pricing can be strategically directed to compensate the most vulnerable parts of the global population. Assessments by the IMF indicate that allocating 20 percent…