# Carbon Pricing ### 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 {% embed url="" %} ### If you want more [How Carbon Pricing Can Save the World - TedX](https://www.youtube.com/watch?v=rg_fP2CZYq4\&t=4s\&ab_channel=TEDxTalks) [How does the emission trading scheme work? - Carbon Control](https://www.youtube.com/watch?v=ReOj12UAus4\&ab_channel=CarbonControl) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://wiki.oikos-international.org/sustainable-finance/interviews/lessons/carbon-pricing.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.