According to Francois Hollande, carbon’s price has to be part of an agreement during the next COP21 that will take place in Paris on December 2015.
A price signal must be sent to the economic actors as a way of internalizing externalities caused by fossil fuels. Though greenhouse gas emissions have to be addressed in the next agreement, a financial contribution is crucial for its stability. Industrialized countries have now to convert their pledges to the Green Climate Funds into a contribution in order to reach the announced $100 billion annual post 2020.
In this context, President Holland mentioned the financial transaction tax, aka the Tobin tax, which he would like to implement in 2016 in order to “contribute to climate change mitigation.