Developing countries such as Pakistan subscribe to the Catch-Up Argument which argues that these countries should be allowed their share of pollutants and greenhouse gases in order to build infrastructure and spur economic growth. Calls are growing for developed countries to compensate developing countries experiencing catastrophic climate change-linked events due to high emitting activities in developed economies.
The implementation of a carbon tax could force companies to pay for their carbon emissions, incentivize reducing carbon footprints, and resolve the issue of the external costs of industrial production. Although carbon markets and trading may not be the solution, a carbon tax could be a crucial step in mitigating climate change.
The destabilization caused by protests can lead to a shift in power and influence, and it is important for countries to have a stable economy and cash reserve in order for the good actors to take advantage rather than the radical groups. Currently, a record 19 developing countries have sovereign debt trading at distress levels, highlighting the need for stability in times of global unrest.
The World Bank has been criticized for investing in fossil fuels while promoting climate action. Critics argue the bank should be financing renewable energy projects instead of funding fertilizers and similar projects that require fossil fuels.
The AMC initiative aims to de-risk R&D investment and capital expenditures needed to scale carbon removal and grow that industry, but we also need to build the world's capacity to pull 10 gigatons of carbon dioxide out of the sky every year by 2050 through collaboration and leveraging the power of capital.
The focus should be on transitioning to renewable energy for communities, even if it means finding alternative solutions for clean cooking and access to electricity. While there may not be specific climate finance for these projects, funding can be obtained through alternative means, such as crowdfunding.