We collaborated with the Group of Thirty on a new report, “Carbon Pricing And Markets: Enabling Efficient Emission Reductions,” to explore actionable pathways for addressing climate change and achieving net-zero emissions — before the challenges become too costly and unmanageable.
The study, led by Lord Adair Turner, chair of the Energy Transitions Commission and former chairman of the Financial Services Authority, in partnership with the Group of Thirty’s Working Group on Carbon Pricing and Markets, offers a comprehensive framework for using market-based mechanisms to accelerate decarbonization.
Since the 2015 Paris Agreement at the COP21 Climate Conference, global consensus on the need to rapidly reduce emissions and limit warming below 2 degrees Celsius has grown, but progress still falls far short of what is required.
The in-depth report, highlights the essential role of carbon pricing through emissions trading schemes or carbon taxes — as the primary tool to decarbonize hard-to-abate sectors such as long-distance transport and heavy industry. It emphasizes the need for international coordination to set common carbon price levels across countries, increasing policy effectiveness worldwide.
Where consensus is lacking, the report advocates using carbon border adjustment mechanisms (CBAMs) alongside domestic carbon pricing to manage emissions embedded in supply chains. Additionally, major developing economies are urged to adopt significant carbon pricing measures in response to the European Union’s CBAM, with revenues from global carbon taxes or CBAMs directed toward climate mitigation, adaptation, and resilience in vulnerable low-income countries.
The report also stresses the growing importance of carbon removals through carbon credit markets to meet net-zero targets. It calls on companies to increase their purchases of removal credits and support investments in removal technologies, while gradually shifting focus from reduction credits to removals, ensuring supply-side integrity in project-based markets.
Enhancing credit quality standards, leveraging reputational incentives, and targeting investments in sectors with high credit potential such as financial services and technology are key recommendations.
Overall, the report advocates carbon pricing, supported by international cooperation and strong carbon credit markets, as the most cost-effective and sustainable path to building a zero-carbon economy while minimizing negative externalities.
To learn more about global carbon pricing and market-based solutions, explore the full report on the Group of Thirty website. To hear directly from Group of Thirty leadership, watch the webinar featuring expert insights and perspectives from September 17, 2025.