Therefore, the job of green transition is to make the implicit cost of fossil carbon emissions explicit and impose restrictions on them. This will require for one, that emitters pay for incremental carbon emissions, and for two, that existing emission rights be made tradable through proper pricing. This way, those that reduce emissions will be rewarded while the emitters will pay their price.
Production and consumption will then realize a low-carbon transition. Such a transition, however, will raise carbon emission-related costs and create upward structural pressure on prices. As the upward and downward pressure on prices in the above analysis offset each other to some extent, the overall price level is expected to stay stable.