Kevin P. Gallagher, Rishikesh Ram Bhandary, Rebecca Ray and Luma Ramos in Science Direct:
In order to meet Paris Agreement targets to limit global warming to 1.5°C, greenhouse gas emissions must peak before 2025 and decline by 43% by 2030. Given the slow pace of progress to this end, the United Nations Emissions Gap Report states that “The task facing the world is immense: not just to set more ambitious targets, but also to deliver on all commitments made. This will require not just incremental sector-by- sector change, but wide-ranging, large-scale, rapid and systemic transformation.” Indeed, at the release of the 2023 Intergovernmental Panel on Climate Change (IPCC) report, Working Group III Co-Chair Jim Skea said, “It’s now or never, if we want to limit global warming to 1.5°C.”
A deep literature and policy debate has emerged on the policy options for combatting climate encompassing pricing tools such as carbon taxes and emissions trading schemes, hard regulations on carbon intensive behavior, green industrial policy, the reduction of harmful subsidies, the introduction of green subsidies, investing in climate-resilient agriculture and infrastructure, and beyond. While economists continue to emphasize carbon pricing as a first-best policy tool, the slow progress, political difficulty, and efficacy of carbon pricing have shifted emphases to a broader policy mix.
The Independent High-Level Expert Group on Climate Finance, at the request of the Egyptian Presidency of COP27, the UK Presidency of COP26, and the UN Climate Change High Level Champions for COP26 and COP27, estimates that the resource mobilization needs to meet these goals in emerging market and developing countries (beyond China) are $2.4 trillion per year by 2030, $1 trillion of which will need to come from external sources such as global private capital markets, bilateral aid, and multilateral institutions.
More here.