This post was authored by Gabriela Leslie, Pedro Piris-Cabezas and Ruben Lubowski
For more information, read our factsheet, The Power of Markets to Increase Ambition.
Carbon pricing is steadily growing worldwide and increasingly recognized as a way to achieve emissions reductions at lower cost than with standard regulations. A recent economic analysis from Environmental Defense Fund found that these cost savings from international trading of emissions could translate into direct gains for the atmosphere – and could produce nearly double the climate ambition at the same overall cost as countries’ complying with their Paris Agreement targets without international markets.