Climate change: Without urgent action, climate impacts could push an additional 100 million people into poverty by 2030

Countries and communities around the world are already experiencing stepped-up  climateclimate change impacts – including droughts, floods, more intense and frequent natural disasters, and sea-level rise – and the most vulnerable are being hit the hardest.

Climate change increases volatility and threatens efforts to end poverty.

The financing required for an orderly transition to a low carbon, resilient global economy can be counted in the trillions, not billions.

Climate action is a vast opportunity for sustainable global development, with investment potential in the trillions of dollars and the ability to drive innovation and create green industries and new jobs.

Achieving the goals of the Paris Agreement will require coordinated global action at an unprecedented scale and speed.

  • The Sustainable Development Goals (SDGs) will only be achieved if tackled along with climate change. The world will soon need to feed 9 billion people while reducing emissions, provide electricity access to 1.1 billion people while transitioning from fossil fuels, and prepare for 2 billion new urban dwellers while reducing the carbon footprint of cities and improving urban resilience.   

Carbon pricing is one of the strongest policy levers available to shift financing flows.  It delivers a triple dividend – it protects the environment, raises revenue, and drives investments to clean technologies.

  • The number of carbon pricing initiatives implemented or scheduled has almost doubled over the past five years. To date, over 40 national and 25 subnational jurisdictions, responsible for about a quarter of global greenhouse gas emissions, are now putting a price on carbon.
  • However, to shift investment at scale, carbon pricing coverage must expand, and prices must rise.  Currently, 85 percent of all forms of carbon pricing sets the price at less than $10 per ton of CO2 equivalent.
  • The High-Level Commission on Carbon Prices, led by Joseph Stiglitz and Nicholas Stern, concluded in May 2017 that a carbon price of $40-$80 per ton of CO2 equivalent by 2020, increasing to $50-$100 per ton by 2030, would allow for achievement of the core goal of the Paris Agreement – keeping global temperature rise to below 2C.