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Carbon pricing

The ambition of Paris: A path toward clean economic growth

Jim Yong Kim's picture
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© Fabien Minh/Connect4Climate/World Bank


​The Paris climate talks offer a once-in-a-generation opportunity to send the clear signal: We can build prosperity and support economic growth without carbon polluting the earth, and we must act with urgency because of a volatile, warming planet.

I believe political leaders from around the world will rise to this challenge in Paris. For us at the World Bank Group, we will help our client countries and companies make that transition to low-carbon and resilient economic development.

The path to carbon pricing

Jim Yong Kim's picture
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Iron and Steel giant ISKOR's Vanderbijl Park refinery. © John Hogg/World Bank


In just six weeks, world leaders will meet in Paris to negotiate a new global climate-change agreement. To date, 150 countries have submitted plans detailing how they will move their economies along a more resilient low-carbon trajectory. These plans represent the first generation of investments to be made in order to build a competitive future without the dangerous levels of carbon-dioxide emissions that are now driving global warming.

The transition to a cleaner future will require both government action and the right incentives for the private sector. At the center should be a strong public policy that puts a price on carbon pollution. Placing a higher price on carbon-based fuels, electricity, and industrial activities will create incentives for the use of cleaner fuels, save energy, and promote a shift to greener investments. Measures such as carbon taxes and fees, emissions-trading programs and other pricing mechanisms, and removal of inefficient subsidies can give businesses and households the certainty and predictability they need to make long-term investments in climate-smart development.

Tackling climate change – for our kids

Jim Yong Kim's picture
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If you have children or grandchildren, you probably have wondered what the world will be like for them in 20 or 30 years. Will it be a better place? Will climate change upend their lives? It's something I have thought about a lot since I became president of the World Bank Group in July 2012. Within the first few months in the job, I was briefed on an upcoming climate change report, and the findings shocked me. I knew then that tackling climate change would be one of my top priorities as leader of a development institution whose mission is ending extreme poverty by 2030 and boosting shared prosperity. If we don't start controlling climate change, the mission to end poverty will fail. Last week I delivered a lecture on climate change at Georgetown University in Washington, D.C., to a roomful of young people who are surely thinking of climate change's impact on their lives. Climate scientists project that if we do nothing to control carbon emissions, temperatures could rise as much as 4 degrees Celsius by the 2080s. Mean temperatures during the last ice age were 4.5 degrees to 7 degrees Celsius lower than today, and the temperature had changed gradually over millennia. We're talking about that kind of temperature shift occurring in the future over a very short period of time. Life on Earth would be fundamentally different.
 

A Year of Opportunity to Combat Climate Change — and Transform Economies

Jim Yong Kim's picture
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A glacier in Chile. © Curt Carnemark/World Bank


​Scientists declared this past year as the warmest year on Earth since record-keeping began in 1880, and a series of scientific reports found glaciers melting and extreme weather events intensifying. There can be no doubt that this year world leaders must commit to transforming their economies to combat climate change.

A U.S.-China Breakthrough for the Planet — and New Economic Growth

Jim Yong Kim's picture
Also available in: Español | 中文

The forecast for climate change has been undeniably altered overnight — positive news for the planet and for economic growth.

U.S. President Barack Obama and Chinese President Xi Jinping, the leaders of the world's two largest economies and two largest emitters of pollutants into the atmosphere, demonstrated that, together, they are leading the global fight against climate change.

Their commitments are an absolutely essential first step if we are to hold the warming of the planet under 2 degrees Celsius, and avoid the disastrous consequences of an even more uncertain world. China committed to an emissions peak by 2030, with 20 percent of its energy coming from renewable sources, and the United States agreed to reduce its emissions by 26-28 percent below 2005 levels by 2025. Importantly, they agreed to expand their joint clean energy research and development.

Business Leaders & Finance Ministers Changing the Conversation to Drive Clean Investment

Rachel Kyte's picture
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Executives from Alstom, the Swedish pension fund AP4, Deutsche Bank, and the French pension fund ERAFP joined finance ministers for an informal climate ministerial discussion about carbon pricing during this year's World Bank Group/IMF Annual Meetings. After the meeting, Rachel Kyte, the World Bank Group's vice president & special envoy for climate change, described the conversation and some of the takeaways.

Climate Action Does Not Require Economic Sacrifice

Sri Mulyani Indrawati's picture
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New Climate Economy Report

Action is urgently needed on climate change, but it does not have to come at the expense of economic growth.  This is the central message of the Global Commission on the Economy and Climate of which I am privileged to be a member. 
 
The New Climate Economy, a new report released by the commission, reinforces the view that major structural and technological changes in the global economy are now making it possible to achieve both: lower-carbon development and better economic growth.