On Monday, May 29, leading economists warned that unless nations around the world boost carbon taxes to as much as $100 per metric ton, the world risks global warming at “catastrophic” levels within only thirteen years. The group of experts includes former chief economist of the World Bank, Nicholas Stern, and Nobel laureate Joseph Stiglitz. The economists stated that by 2020, governments would need to tax carbon dioxide at $40 to $80 per ton, increasing to $100 per ton by 2030 at the latest to avoid a 2°C rise in global temperatures.
The opinion was part of a report from the International Monetary Fund and World Bank backed High Level Commission on Carbon Prices, which suggested that the more vulnerable economies of poor countries could aim for lower taxes, but that the overall upward trend would need to happen quickly, and all over the world. This shift will be central to meeting the Paris Agreement goals.
European leaders, while supportive of the Paris goals, have coasted since 2005 with a carbon trading plan that lets major polluters slide, paying €6 ($6.71) for every ton of carbon they pump into the air. Of course that’s more than the U.S. is doing; the country has taken the position that carbon tax of any kind is dangerous to American jobs and cannot be supported. Whether the taxes are too low or non-existent, the criticism is the same: it is cheaper to pollute than to change behavior.
Other ideas for curbing climate change are out there; the carbon tax isn’t the only answer, although almost all experts agree that it is a necessary part of the answer. Industrialists like Elon Musk agree; Musk has characterized the era of tax-free carbon the “dumbest experiment in history.” Experts also agree that reducing carbon emissions isn’t enough. Carbon sinks like forests must also be preserved so that carbon dioxide can be absorbed.
Farmers need to do their part in the fight against climate change by adopting environmentally-friendly farming practices, such as eliminating tillage, extending crop rotations, or planting cover crops. Researchers are now proving that AI can help fight climate change by finding ways to reduce energy demand and the most energy-efficient options for energy use. Finally, experts have shown that by restoring degraded soils and forests and reducing logging and other unsustainable uses of wooded areas in the U.S., we can increase our forests’ rate and ability to remove atmospheric carbon dioxide.
The bottom line is that all of these efforts are necessary, and that climate change is at a critical point now — and so is humanity.