...The world’s top priority must be to get finance flowing and get prices right on all aspects of energy costs to support low-carbon growth. Achieving a predictable price on carbon that accurately reflects real environmental costs is key to delivering emission reductions at scale. Correct energy pricing can also provide incentives for investments in energy efficiency and cleaner energy technologies.
A second immediate step is to end harmful fuel subsidies globally, which could lead to a 5 percent fall in emissions by 2020. Countries spend more than $500 billion annually in fossil-fuel subsidies and an additional $500 billion in other subsidies, often related to agriculture and water, that are, ultimately, environmentally harmful. That trillion dollars could be put to better use for the jobs of the future, social safety nets or vaccines.
A third focus is on cities. The largest 100 cities that contribute 67 percent of energy-related emissions are both the center of innovation for green growth and the most vulnerable to climate change. We have seen great leadership, for example, in New York and Rio de Janeiro on low-carbon growth and tackling practices that fuel climate change.
At the World Bank Group, through the $7 billion-plus Climate Investment Funds (climateinvestmentfunds.org/cif/), we are managing forests, spreading solar energy and promoting green expansion for cities, all with a goal of stopping global warming. We also are in the midst of a major reexamination of our own practices and policies...