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Global carbon pricing to stimulate growth rate
Global carbon pricing could boost the world economy, Catherine Mann, a member of the Monetary Policy Committee of the Bank of England, said.
The BoE policymaker is sure that adopting a global price on greenhouse gas emissions is the most efficient way of stimulating economic growth, Bloomberg reported.
According to Mann, global carbon pricing would help reduce greenhouse gas emissions and spur investment and productivity. In addition to benefits for the climate, that could lead to a "higher level of economic performance in the medium term."
Carbon emissions cause global warming, ecologists say. To control emissions, the Kyoto Protocol was adopted in 1997, but carbon-pricing initiatives in 65 countries were launched much later.
At the 2021 United Nations Climate Change Conference in Glasgow, a new carbon-trading system was introduced. It allows countries to trade their CO2 quotas.
Global economic growth has slowed down over the past decade, causing concern among experts. It started right after the technological breakthrough in the 1990s. In this light, BoE officials believe it is time to make every effort to develop new economic sectors. Conditions for carbon neutrality and changes in consumer behavior are needed so that new industries could expand. Otherwise, the current goal may prove elusive, Catherine Mann suggested.
Published 20 January 2022
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© InstaFintech Group
