The International Monetary Fund has offered a rather unexpected proposal. It suggests setting a minimum tax for carbon emissions in order to reduce harm to the environment. The tax deducted from carbon emissions will be used to finance environmental projects in the next decade, Bloomberg states. According to the agency, the IMF has determined the fee for the countries that are still unable to make their economies green.
The IMF's report was published on June 18. It proposed a solution to the climate issue – the introduction of a minimum payment, namely a carbon tax. It offers to set different prices for each country, depending on the economic situation.
The IMF implies a three-level minimum carbon tax for the United States, China, India, the United Kingdom, the EU countries, and Canada. In developed countries, a tax of €75 is provided for 1 ton of carbon. In emerging markets with high and low incomes, the tax may total $50 and $25, respectively. It is expected that by 2030, such measures will help to reduce harmful emissions by 23%.
According to the head of the IMF, the establishment of a tax for carbon emissions is a fairly effective measure as it will stimulate countries to move to green economies. The IMF believes that the participation of all G20 countries in this project will reduce potential global carbon dioxide emissions by 85%.
