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Climate Politics

World Acting Sooner Can Limit Energy Transition Costs, IMF Says

  • Emissions must be cut at least one quarter to meet Paris goals
  • Cost of the adjustment will be determined by speed of action
Germany Plans 40 New Coal-Fired Power Plants
Photographer: Sean Gallup/Getty Images Europe

The world needs to cut greenhouse gas emissions by at least a quarter this decade to achieve the Paris Agreement’s goal of carbon neutrality by 2050, and the cost will be lower if nations act sooner, according to International Monetary Fund economists.

Work toward the goal will entail short-term costs, IMF researchers wrote in a blog post published Wednesday. The longer countries wait to make the transition, the larger the costs will be, they said.