Carbon Pricing

Carbon pricing assigns a financial cost to emitting carbon dioxide (CO2), aiming to reduce emissions through market-based approaches. It provides economic incentives to cut pollution and invest in cleaner alternatives.

Carbon Taxes & Trading Systems
Carbon taxes set a fixed price per ton of CO2, while cap-and-trade systems limit total emissions and allow companies to buy and sell permits. Both approaches internalize the environmental cost of carbon.

Market Signals & Investment
Clear and consistent carbon pricing drives investment toward low-carbon technologies by making emissions-intensive activities more expensive. It also improves transparency and long-term planning for businesses.

Global Adoption & Debate
Over 70 jurisdictions use carbon pricing, covering around 25% of global emissions. Critics point to potential costs for consumers and uneven impacts, while advocates emphasize its role in reaching climate goals.