The current carbon dioxide level is 400 parts per million and is leading to a rise in sea level, glacial retreat, and ocean acidification. Global warming is the long-term rise in the temperature of the earth due to factors of pollution like carbon emissions and trapping of greenhouse gases. Climate change is determined by the change in average temperatures during a season, and though the change is noticeable, it was slow earlier. However, it has now reached a point where it is happening so rapidly that it might be called the pace of extinction.
Thankfully, there is a bigger picture in the minds of big companies like IMF, and Climate Change is getting a voice through their support and backing. They believe and promote that the financial aspect of this would also be economically challenging for the whole world, and thus, strong steps need to be taken in this regard.
What’s causing the climate to change?
The earth retains some of the sun’s heat at night so as to support life. This natural phenomenon, known as the greenhouse effect, has been pushed beyond the limit that the earth can hold. This is mostly because of human activities aggravating the amount of carbon present in the atmosphere. These activities include burning fossil fuels, increased release of CFCs, and increasing pollution from vehicles, to name a few. Cutting trees on a large scale also reduces the conversion of carbon dioxide into oxygen. There has been a record-high of 2.7 percent increase in 2018, which is beyond alarming.
The marine life being destroyed is one of the biggest reasons since the oceans have become the dumping grounds for plastic and other such toxic waste products. Financially speaking, things get worse with population explosion because there still exists a disparity of resources and ever-increasing exploitation by the ones who possess the most. According to Mark Carney, “Incurred* losses in 2018 were $80 billion, double the inflation-adjusted average for the past 30 years.” IMF and Climate Change are quite related topics in this regard because the natural restoration is very close to the global economy. The causes of climate change are to be dismantled in order to fight the battle that restricts the growth of our economy all around the world. It is both prevention and cure, while also looking for better methods of cure.
Ways to tackle climate change
When we know what to work on, there is a certain extent of work we can put in through small efforts. Growing emissions are the most easily worked by common people.
Reducing these emissions and subsequent losses is the first way out, and this is encouraged by small and simple methods like growing more trees, carpooling, using CNG instead of conventional fuels, etc.
Here’s what the IMF is doing to tackle climate change
We can not neglect the efforts of IMF in tackling climate change since they have been quintessential in making progress in this area.
They have introduced and encouraged fiscal policies like:
- Feebate: In this system, they suggest that “governments charge a fee on polluters and give a rebate for energy-efficient and environmentally-friendly practices.” This might actually help people regulate the use of electricity and transport and switch to eco-friendly methods and quantities of consumption.
- Pricing Scheme: This method encourages a tax system with an amount charged from each citizen as something on the lines of ‘carbon tax.’ This has worked out in a lot of countries like Sweden, where the emissions prove to be have decreased by 25% and the economy by 75%.
These undertakings have evidently worked in favor of the planet, and the IMF is still putting continual efforts in this front. However, what’s needed is governments to become more proactive so that such measures can be exercised on a global scale.
It is essential to establish the link between the economy and nature as much as that of IMF and Climate Change. Our growth fiscally also depends on nature, and considering the exploitation done so far, it is about time to make amends. The suggestions by the IMF to work on climate change are necessary and need to be allied with.
It has also been working on helping countries with higher chances of natural and climate risks. There has been substantial growth in the financial sector, and the economy as a whole after the implementation of said suggestions has taken place, and carbon emissions are reduced. We need to continually encourage each other to identify this area of problem and start working immediately.