Previous: 3. Its target is inadequate
The Fund contains no penalty for continuing with business-as-usual (note the safeguard mechanism will only apply above business-as-usual, if at all). Yet if the world continues along a business-as-usual emissions growth trajectory, it will cause an unimaginably catastrophic ~6°C of global warming by 2100. It is unacceptable not to mandate a change of course.
The Government’s aversion to penalizing pollution represents a failure to understand climate change is an urgent crisis. The apparent costs of climate action are greatly exaggerated; to the extent that the costs are real, they are short-term and mainly paid by polluting companies. In contrast, the external costs of CO2 emissions are greatly underestimated, long-lived, and paid by everyone.