The dangerous consequences of climate change are clearer than ever before. Yet, analyses indicate that countries’ implemented policies and Nationally
Determined Contribution (NDC) pledges fall far short of what is needed to keep the global temperature rise well below 2°C and pursue efforts to limit it to 1.5°C by 2100. Carbon pricing can play a key role in the urgent efforts needed to accelerate the transition toward a low-carbon, climate-resilient future and increase the current level of ambition. This report takes stock of the latest developments in carbon pricing initiatives across the globe, presents trends surrounding their development, the role they play in various economic sectors, and the policy choices involved. Tracking these developments helps identify gaps between current carbon pricing initiatives and those that would be needed to deliver on the objectives of the Paris Agreement. To this end, the report
covers a variety of ways of putting a price on carbon emissions, which are here classified as carbon pricing, internal carbon pricing and implicit carbon pricing.