Given how cheap thermal fuels still are, high carbon prices will be a critical component to prevent global temperatures from rising, said a new BofA Global Research report.

The report updates the BofA scenarios for decarbonization and adds a "net zero" path with an average CO2 price of $200 per tonne (/t).

“Yet we also show costs will not likely be evenly distributed across countries. Also, we note decarbonization could become much more expensive over time after coal-fired power and internal combustion engines are displaced,” the report said.

Beyond technological advances, shifting behaviour will likely require major policies centered on costs. According to the IEA, the estimated cost of achieving "net zero" will be about $5 trillion a year for three decades (about $150/t multiplied by 34 Gt of CO2e). With global GDP at ~$90 trillion and global tax revenues at ~$20 trillion, the planet will need a major redistribution of resources until 2050. – TradeArabia News Service