What is Carbon Pricing?

• Putting a price on carbon emissions is viewed as one of the most effective methods of tackling climate change.

• There are many types of carbon pricing. The most common are the emission trading system (ETS) and Carbon Taxes, corresponding to quotas and tariffs in international trade.

• There is a growing consensus among governments, the financial community and businesses on the fundamental role of carbon pricing in the transition to a decarbonized economy.

References:

https://www.imf.org/en/Topics/climate-change