An unprecedented international alliance of global leaders has asked the countries around the world to put a price on carbon to strengthen the fight against climate change ahead of a key summit Paris later this year to tackle the challenges posed by global warming.
In a joint statement, these global leaders called on their peers to join them in pricing carbon to steer the global economy towards a low-carbon, productive, competitive future without the dangerous levels of carbon pollution driving climate change.
The 'Carbon Pricing Panel' that includes heads of state, chief of international bodies and CEOs of top companies was convened by the World Bank Group and International Monetary Fund to spur further, faster action ahead of the Paris climate talks.
The leaders of the World Bank, International Monetary Fund, Germany, France, Chile, Mexico, Ethiopia, and the Philippines are part of the panel.
Anand Mahindra head of Mahindra Group is the only one from India to be part of the group.
"There has never been a global movement to put a price on carbon at this level and with this degree of unison. It marks a turning point from the debate on the economic systems needed for low-carbon growth to the implementation of policies and pricing mechanisms to deliver jobs, clean growth and prosperity," said World Bank Group President Jim Yong Kim.
"The science is clear, the economics compelling and we now see political leadership emerging to take green investment to scale at a speed commensurate with the climate challenge," he said.
"Finance ministers need to think about reforms to fiscal systems in order to raise more revenue from taxes on carbon-intensive fuels and less revenue from other taxes that are detrimental to economic performance, such as taxes on labour and capital," said Christine Lagarde, Managing Director of the IMF.
Around the world, about 40 nations and 23 cities, states and regions have implemented or are putting a price on carbon with programmes and mechanisms covering about 12 per cent of global greenhouse gas emissions.
The number of implemented or scheduled carbon pricing instruments has nearly doubled since 2012, reaching an aggregate market value of about USD 50 billion.
"Low carbon technologies are an element in the fight against worldwide climate change. With a price for carbon and a global carbon market, we promote investment in these climate friendly technologies," said German Chancellor Angela Merkel.
Mahindra said growth and Sustainability are complementary and not conflicting goals, both are necessary to achieve a reasonable quality of life for all.
"Emerging countries will need to leverage technology to follow a low carbon growth path while developed nations will need to reduce their carbon footprint," he said.