Working Together for Better Climate Action: Carbon Pricing, Policy Spillovers, and Global Climate Goals

This report discusses the global state of climate action with a focus on carbon pricing and its role in achieving global emission reduction targets. It addresses the challenges of implementing carbon pricing policies due to concerns over economic competitiveness, carbon leakage, and distributional impacts. The report also explores the positive spillovers of coordinated climate policies, particularly through the development of green technologies. Key policy recommendations emphasize international coordination to minimize negative cross-border effects, increase climate finance, and promote sustainable economic growth. Additionally, it presents metrics to evaluate carbon pricing and outlines potential pathways to scale climate action aligned with the Paris Agreement.