To wean the world off use of fossil fuels they must become less cheap
Carbon must have a higher price tag if the risk of catastrophic global warming is to be contained. On this question environmentalists and economists agree — joined, perhaps, by an increasing number of industrialists. On Monday, in letters to the Financial Times and the UN Framework Convention on Climate Change, six major oil and gas companies argued for the global adoption of carbon pricing. This is vital to discourage use of carbon-based energy and “to help stimulate investments in the right low carbon technologies and the right resources at the right pace”.
The case is clearest for coal, which is both very cheap and extremely dirty. Burning it emits a kilo of carbon dioxide for every kilowatt hour of electricity generated — about 20 times more than wind, solar or geothermal energy. It is also easy to transport and store, and abundantly available. For these reasons coal still provides almost one-third of the world’s energy needs.
