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  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund

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STAFF CLIMATE NOTES

Not Yet on Track to Net Zero

The Urgent Need for Greater Ambition and Policy Action to Achieve Paris Temperature Goals

Simon Black, Ian Parry, James Roaf, and Karlygash Zhunussova

IMF STAFF CLIMATE NOTE 2021/005

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©2021 International Monetary Fund

Not Yet on Track to Net Zero: The Urgent Need for Greater Ambition and Policy Action to Achieve Paris Temperature Goals

IMF Staf Climate Note 2021/005

Simon Black, Ian Parry, James Roaf, and Karlygash Zhunussova*

DISCLAIMER: The IMF Notes Series aims to quickly disseminate succinct IMF analysis on critical economic issues to member countries and the broader policy community. The IMF Staf Climate Notes provide analysis related to the impact of climate change on macroeconomic and fnancial stability, including on mitigation, adaptation, and transition. The views expressed in IMF Staf Climate Notes are those of the author(s), although they do not necessarily represent the views of the IMF, or its Executive Board, or its management.

RECOMMENDED CITATION: Black, Simon, Ian Parry, James Roaf, and Karlygash Zhunussova. 2021. “Not Yet on Track to Net Zero: The Urgent Need for Greater Ambition and Policy Action to Achieve Paris Temperature Goals.” IMF Staff Climate Note 2021/005, International Monetary Fund, Washington, DC.

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Not Yet on Track to Net Zero: The Urgent Need for Greater Ambition and Policy Action to Achieve Paris Temperature Goals

Simon Black, Ian Parry, James Roaf, and Karlygash Zhunussova October 2021

Summary

Achieving the Paris Agreement’s temperature goals requires cutting global CO2 emissions 25 to 50 percent this decade, followed by a rapid transition to net zero emissions. The world is currently not yet on track so there is an urgent need to narrow gaps in climate mitigation ambition and policy. Current mitigation pledges for 2030 would achieve just one to two thirds of the emissions reductions needed for limiting warming to 1.5 to 2oC. And additional measures equivalent to a global carbon price exceeding $75 per ton by 2030 are needed. This IMF Staff Climate Note presents extensive quantitative analyses to inform dialogue on closing mitigation ambition and policy gaps. It shows 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.

Not Yet on Track to Net Zero: The Urgent Need for Greater Ambition and Policy Action to Achieve Paris Temperature Goals
Author: Mr. Simon Black, Ian Parry, Mr. James Roaf, and Karlygash Zhunussova