The main concern with replacing coal with renewable sources is price, says the International Monetary Fund (IMF). In a report published on Wednesday, however, the IMF estimates that such a transition could pay for itself and guarantee global net income of nearly $78 trillion by the end of this century.
There are disagreements among negotiators on how to ditch coal. Part of it is opposition to carbon taxes, and now even countries that could have given up fuel are reversing progress amid rising energy prices from Russia’s war in Ukraine, the IMF says.
The Fund emphasizes that the benefits of leaving coal are to avoid the harm caused by climate change and the health of the population.
The value was calculated with the estimated reduction of greenhouse gas emissions with the reduction of coal and application of the price on such volumes.
“Our research shows that the end of coal use should not be seen as too expensive, as it offers economic benefits from reduced carbon emissions, such as avoiding physical damage to infrastructure caused by climate change,” say the authors. “Investments in renewable energy also support economic growth and provide additional benefits from innovation.”
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