Carbon Pricing

The 'polluter pays' principle

Key information

There is a general consensus that carbon pricing is a key strategy that will help lead us to a fully decarbonised economy.

It works by putting a price on carbon emissions, companies have a large financial incentive to reduce their emissions.

How it works

The two most common carbon pricing policies are:

Emission Trading System (ETS) - Companies have emissions units which are tradable, if a company emits less than their units, they can sell the remaining and benefit financially.

Carbon Tax - Directly sets a price on carbon by setting a specific tax rate on greenhouse gas emissions.

Our favourite video

If you want more

How Carbon Pricing Can Save the World - TedX

How does the emission trading scheme work? - Carbon Control

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