Get a daily digest of the latest news in tech, science, and technology, delivered right to your mailbox. Subscribe now.by the International Monetary Fund, called Climate Crossroads: Fiscal Policies in a Warming World, is warning that the global energy transition may not be financially sustainable at current rates.
This has resulted in a basic trade-off that affects policymakers and takes into consideration two facts. First, depending only on spending-based strategies to achieve net zero goals by 2050 will only grow more expensive, perhaps increasing public debt by 45 to 50 percent of GDP for the largest emitters. Second, insufficient climate action would expose the world to the detrimental negative effects of global warming.
To do this, the IMF suggested governments use green incentives. Governments or other organizations may offer financial incentives known as green subsidies to encourage and support environmentally friendly and sustainable business practices, technologies, and sectors. These subsidies are also sometimes referred to as environmental subsidies or clean energy subsidies.