IMF Calls for Imposition Carbon Fees to Facilitate Transition to Renewable Energy

The First Deputy Managing Director of the International Monetary Fund (IMF) said Wednesday that imposing carbon fees will be necessary to help finance the global transition to renewable energy, warning against increasing resort to financial support for “green” projects.

"I think we need to put carbon fees squarely on the table despite all the political issues involved," Gita Gopinath said at a conference in Washington. "We cannot consider subsidies as an alternative to carbon tariffs," she added.

She noted that current discussions on the energy transition "seem to focus on subsidies rather than prices." And she continued, "Financially, there is a big difference between addressing carbon pricing and subsidies."

Gopinath pointed out that the practice increases revenues that can then be used to help households and businesses deal with the energy transition, as well as reduce debt.