Global carbon pricing, the how-to.

Summary An ambitious agreement in Paris must go beyond the limits of the one-legged protocol signed in Kyoto or the self-service system introduced in Copenhagen where everyone can pick and choose what suits them. The Paris agreement must set a framework, with long-term visibility and regular adjustment processes over time. Like the Montreal Protocol for the protection of the ozone layer, such an agreement must be based on three pillars: a strong political commitment from governments, a rigorous and independent measurement, verification and reporting system, and powerful economic instruments. The key instrument to combat greenhouse gas emissions is the introduction of international carbon pricing.