What is carbon pricing?

Can you imagine a world where nations have to pay a price for every ton of carbon they emit? This is slowly becoming a reality. On April 23, 2022, Pennsylvania became the first fossil fuel producing state in the US to adopt a carbon pricing policy. Carbon pricing works by putting a monetary value on carbon which makes the cost of emitting carbon explicit to those polluting. Carbon Markets can function in two ways according to the Paris agreement of 2015

 

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