Carbon pricing 

An economic mechanism that assigns a monetary cost to greenhouse gas (GHG) emissions, typically measured per metric tonne of carbon dioxide equivalent (CO₂e). The goal is to incentivise reductions in emissions by making polluters financially accountable for their environmental impact. 

 
Some examples of carbon pricing measures include: 

• Carbon tax: A fixed price per tonne of CO₂e emitted, paid directly by polluters. 

• Cap and trade: An emissions trading system where a cap on emissions is set, and companies can trade emissions allowances. 

• Internal carbon pricing: A voluntary system where companies assign a carbon cost to internal operations to drive low-carbon investments.