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Stable carbon prices increase investor confidence---certainty enables private climate finance.
Simon Black et al. 22, Economist at the IMF's Fiscal Affairs Department, “Getting on Track to Net Zero: Accelerating a Global Just Transition in This Decade,” https://shorturl.at/uyAM1
A robust and predictable carbon price would help catalyze and efficiently allocate private climate finance flows. Private financing has a key role to play in advancing the transition (IMF 2022c). A key concern of private investors is policy uncertainty. By committing to carbon pricing, countries can increase investor confidence and enable private climate finance. While private finance cannot substitute for direct support from public sources, it is a key complement.
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