CO2-Pricing

CO2-pricing is a political instrument used to price carbon dioxide (CO2) emissions in order to encourage companies, households and other organizations to reduce or avoid them. A charge is levied on every tonne of CO2 emitted, which creates an incentive to reduce emissions and invest in clean energy solutions. The CO2 price can be set through a variety of mechanisms, from a carbon tax to a cap-and-trade system. Putting a price on emissions is seen in many places as the most efficient way to encourage polluters to reduce emissions.