Achieving the Paris Agreement’s temperature goals requires cutting global carbon emissions 25-50% this decade, followed by a rapid transition to net-zero emissions. The world, however, is currently not yet on track so there is an urgent need to narrow gaps in climate mitigation ambition and policy.
This IMF Staff Climate Note presents extensive quantitative analyses to inform dialogue on closing mitigation ambition and policy gaps. It shows purely illustrative pathways to achieve the needed global emissions reductions while respecting international equity. The note also presents country-level analyses of the emissions, fiscal, economic and distributional impacts of carbon pricing and the trade-offs with other instruments - comprehensive mitigation strategies will be key.