2024-04-19 10:56:37
Carbon pricing should be an integral part of any policy.
Era Dabla-Norris, Deputy Director of the IMF’s Fiscal Affairs Department, said this today, answering a question from Trend, during a briefing on financial monitoring (Fiscal Monitor), held as part of the IMF spring meetings in Washington, Day.Az reports.
She recalled that in the October 2023 Fiscal Monitor, the IMF spoke about the fundamental trilemma that countries face when it comes to addressing climate change.
“Relying on subsidies to solve this problem would be very costly financially and could add to existing pressures. Doing nothing is not an option because global warming will indeed have detrimental effects on people’s lives. And at the same time At the time, using a carbon price as a way to meet climate commitments could be considered crossing a political “red line,” she said.
Era Dabla-Norris noted that one way or another, a package of measures is needed that will allow countries to circumvent this trilemma.
“And we believe that carbon pricing should be an integral part of any policy, as it can allow countries to raise the revenues needed for green investments. But it must be complemented by a range of other regulatory and other measures to incentivize firms and households to decarbonization,” she concluded.
It should be noted that on April 15, the Spring Meetings of the International Monetary Fund and the World Bank Group started in Washington.
Major ministerial meetings and events will be held April 17-19, and other meetings will be held April 15-20.
Key events include meetings of the Development Committee and the International Monetary and Financial Committee of the IMF, which discuss the progress of the work of the World Bank Group and the IMF.
The Spring Meetings bring together central bankers, finance and development ministers, parliamentarians, private sector representatives, civil society organizations and academics to discuss issues of global concern, including the global economy, poverty eradication, and economic development.
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