Carbon pricing is an essential tool in the fight against global warming, but it shouldn’t be the only tool we use. It needs to be paired with a full suite of climate solutions, including investments in clean energy and clean transportation. Fortunately, carbon pricing can help with that too.
Putting a price on carbon means polluters have to pay for their emissions. As a result, carbon pricing has the potential to raise significant money to invest in climate solutions that will cut emissions even further. The money can be invested in wind turbines and solar panels, energy efficiency measures, electric vehicle tax incentives and charging infrastructure, and more.
In 2018, for example, California’s cap-and-trade program generated $3.3 billion that the state invested in clean transportation, sustainable communities, natural resource management, waste diversion, clean energy and energy efficiency.