In order to reach 2050 emissions reduction targets, trillions of dollars in public and private capital are needed to adopt and scale green energy technologies, financial experts told participants at a session on climate finance at the 53rd World Economic Forum Annual Meeting. Despite the urgent need for climate finance, numerous barriers have impeded the flow of private capital to decarbonisation projects around the world and especially in the Global South. Financial experts agreed that a major hurdle is the need for carbon pricing. “We’re still resisting the necessity that carbon has to be priced, and the price has to climb up,” said Kristalina Georgieva, Managing Director of the International Monetary Fund. Public resistance to a carbon tax has prevented many nations from establishing carbon pricing via taxation, but taxation is not the only way to deter emissions.

Source: ESG News