Carbon Pricing for Energy Transition and Decarbonization

Carbon pricing is an integral element of the climate policy architecture that can help countries reduce emissions cost-effectively, achieve climate targets articulated under their nationally determined contributions, and raise ambition over time. This study provides insights on how well-designed carbon pricing instruments can be woven into climate policies to accelerate efforts toward energy transition and decarbonization. Targeted at policymakers, it aims to help countries design and implement carbon pricing instruments tailored to their national circumstances and priorities that create low-cost, sustainable energy systems capable of boosting resilience and driving long-term growth.