CO2 pricing

Carbon pricing is a policy tool that prices carbon dioxide (CO2) emissions to encourage businesses, households, and other organizations to reduce or avoid them. It involves charging a fee on each ton 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 considered in many places to be the most efficient way to encourage polluters to reduce emissions of harmful substances.