Carbon Pricing: A Development and Trade Reality Check

This document focuses on carbon pricing as one policy strand used to tackle global GHG emissions. It gives an overview of implemented and forthcoming domestic and cross-border carbon pricing mechanisms, as well as their implications for GHG emissions, international trade and development. It lays out the characteristics of various approaches, including the potential pitfalls and unintended economic and environmental side effects which need to be addressed for these approaches to work.