For example, Nordhaus has ﬂoated the idea of climate clubs as a step in that direction. [7] In this context, Europe can act as a role model and standard setter for other regions of the world. It can encourage them to increase their efforts, by demonstrating that an ambitious climate policy is possible without jeopardising the foundations of economic prosperity and social peace.
The EU not only aims at making Europe climate-neutral by 2050, but also at aligning decarbonisation with efforts to strengthen resilience, growth and social cohesion. Raising the price of carbon should ideally be combined with an investment push to facilitate the transition. Stronger long-term growth and technological progress will help us to reduce carbon emissions in the future.