The primary objective of economic and financial incentives around carbon emissions is to redirect investment from high to low carbon technologies . Recent years have seen policy interventions to incentivise transitions in energy, land and industrial systems to address climate change and sustainability focus on price-based, as opposed to quantity based, interventions. Price-based interventions aim at leveraging market mechanisms to achieve greater efficiency in the allocation of resources and costs of mitigating climate change. For example, carbon pricing initiatives around the world today cover approximately 8 gigatons of carbon dioxide emissions, equivalent to about 20% of global fossil energy fuel emissions and 15% of total carbon dioxide GHG emissions . Meanwhile, environmental taxes and green public procurement push producers to eliminate the negative environmental effects of production . There are several advantages for environmental taxation including environmental
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report