Carbon Pricing for Green Transition

Publication | May 2024
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Transitioning to a low-carbon economy requires systemic change through policy instruments that can incentivize changes in behavior and bring investment.

 Key Points

  • Systemic change is required for a low-carbon economy transition.
  • Carbon pricing mechanisms are commonly classified as either mandatory or voluntary, although hybrid systems that are a combination of the two also exist.
  • Carbon pricing strategies are an interplay of design principles and local conditions, including the stage of development.
  • While carbon pricing is primarily a domestic issue, countries should also take into consideration the increasing internationalization of climate policy instruments.
  • The implementation of carbon pricing strategies is better done in phases and should be evaluated periodically.
     

Additional Details

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Subjects
  • Climate change
  • Environment