The main concern in replacing coal with renewable sources is price, says the International Monetary Fund (IMF). However, in a report released on Wednesday, the IMF estimated that such a transition could pay off, guaranteeing nearly $78 trillion in net global income by the end of this century.
There are differences of opinion among negotiators on how the coal phaseout should go about. Part of this is opposition to carbon taxes, and now even countries that could have gone off fuel are reversing gains in the face of rising energy prices from Russia’s war in Ukraine, the IMF says.
The fund emphasizes that the benefits of phasing out coal are to avoid the damage caused by climate change and the health of the population.
The value was calculated using the estimated reduction in greenhouse gas emissions from reducing coal and applying the price to such quantities.
“Our research shows that phasing out coal should not be viewed as too expensive as it offers economic benefits through reduced carbon emissions, such as: B. avoiding physical damage to infrastructure caused by climate change,” say the authors. “Investments in renewable energy also support economic growth and provide additional benefits through innovation.”
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