Staff Climate Notes

Is the Paris Agreement Working? A Stocktake of Global Climate Mitigation

Author/Editor:

Simon Black ; Ian W.H. Parry ; Karlygash Zhunussova

Publication Date:

November 21, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Urgent and aggressive action to cut greenhouse gas emissions this decade is needed. As countries take stock of the Paris Agreement, this Note provides IMF staff’s annual assessment of global climate mitigation policy. Global ambition needs to be more than quadrupled: emissions cuts of 50 percent below 2019 levels by 2030 are needed for 1.5 degrees Celsius, but current targets would only achieve 11 percent. We provide options for ratcheting-up ambition equitably. Implementation could be accelerated via agreements on minimum carbon prices. Drastic increases in mitigation investment are needed, requiring policies to shift private sector incentives. Climate finance should be scaled-up, with a new goal aligned with needs in developing countries. The development and diffusion of low-carbon technologies should be accelerated collaboratively. Overall, the Paris Agreement is making progress, but a response to the Global Stocktake that prioritizes decisive action this decade is critical.

Series:

Staff Climate Note No 2023/002

Subject:

Climate change Climate finance Economic sectors Environment Financial crises Greenhouse gas emissions Technology

Frequency:

occasional