Carbon pricing
Compare national policies on Carbon pricing across jurisdictions, through progress, institutions, and expectation structures.
What it is
An umbrella term for putting a price on emissions, broadly split into a carbon tax (fixes the price, the market sets the quantity) and emissions trading (caps the quantity, the market sets the price).
Implications for companies
Pricing emissions changes the economics of efficiency, fuel switching and capital investment. The price level and its predictability drive investment decisions.
Differences by country
The EU centres on the ETS combined with CBAM. Japan combines GX-ETS with a GX surcharge from FY2028 — "growth-oriented carbon pricing." Many countries use both a carbon tax and an ETS.
What to watch
Countries are expanding sectoral coverage and shifting from free allocation to paid allowances. Securing price predictability is a shared issue.
Related policies
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