Achieving zero emissions under a cap-and-trade system

Current estimates of abatement costs suggest that achieving net-zero emissions will require much higher carbon prices than the world has ever experienced, but concerns about economic competitiveness and negative distributional impacts pose a limit on the levels carbon prices can reach. This challenge calls for both reforms to carbon pricing systems and complementary policies that work alongside carbon pricing. This policy brief by the International Carbon Action Partnership and the European University Institute’s Florence School of Regulation explores policy options to keep carbon prices in check and achieve net-zero emissions.