IMF calls for carbon tax

The International Monetary Fund says a carbon tax on aviation and shipping would help deliver global climate goals.

In a new report, published to follow the signing of the Paris agreement, it says carbon pricing should be “front and centre” in efforts to curb global warming.

A charge of $30 a tonne on carbon dioxide embedded in international transport fuels could have raised $25 billion in 2014, the influential Washington DC-based body estimates.

Levies on this sector are “promising”, and a possible source of climate finance – support for developing countries to go green and adapt to shifting weather patterns.

Emissions from planes and ships, around 4 percent  of the global total and rising, were not directly addressed in the Paris agreement.

The International Monetary Fund noted there were “challenges” to imposing a levy, including the need for international coordination and legal issues, “but the practicalities should be manageable”.