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A new carbon pricing paradigm for the path to net zero

Which role carbon pricing could and should play in the future policy mix?


Ottmar Edenhofer

Director, Potsdam Institute for Climate Impact Research; Director, Mercator Research Institute on Global Commons and Climate Change; Professor for the Economics of Climate Change, Technische Universität Berlin,

Beatriz Yordi Aguirre

Director, European & International Carbon Markets, European Commission, Directorate General for Climate Action (CLIMA),

Video and audio recordings

EU's ambitious climate targets have reopened the question of which role carbon pricing should play in the future policy. While decarbonisation mainly comes from directed technological change policies, should carbon pricing remain backstop that only ensures targets are met? Or, should there be a paradigm-shift: developing carbon pricing from backstop to centerpiece?

At this event, we launched the latest policy contribution 'A whole-economy carbon price for Europe and how to get there', and discussed how to strengthen the role of carbon pricing, while taking economic, political and institutional considerations into account.