A report by the International Energy Agency (IEA) has warned that world governments must invest US$45tn in energy technology or risk a 130 percent rise in carbon emissions by 2050.
In order to meet targets of halving emissions by 2050, the cost of carbon would have to reach US$200 a tonne or possibly even as high as US$500 a tonne.
Current carbon emissions rights credit in Europe stands at just US$30 a tonne.
The Group of Eight are to meet this weekend in Japan, where they will be urged to meet global targets of reducing greenhouse gases.
The IEA also warned that if governments continue with current policies, oil demand will rise by 70 percent.
The report identifies that 35 coal and 20 gas power plants a year between 2010 and 2050 must be decarbonised through the installation of C02 capture and storage.
The power sector must also build 32 new nuclear plants and install 17,500 wind turbines each year.
The IEA says a research and development effort costing between US$10bn and US$100bn per year is required over the next 15 years to cut CO2 emissions.
By Alex Hawkes
Twitter