International Monetary Fund chief Christine Lagarde called on Monday for tax reforms to be included in a global climate deal to raise incentives for consumers to reduce their energy consumption and to boost demand for cleaner fuels.
"With a fairer carbon price, energy savings will be encouraged and demand strengthened for cleaner energy sources and 'greener' investments," Lagarde wrote, adding price changes could be achieved via energy taxes.
A new climate deal under negotiation in Paris this week is not expected to include anything more than vague language on carbon pricing after 10 years of emissions trading on the world's biggest carbon market, the EU Emissions Trading System, has yet to exact a meaningful fee on big polluters.
