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Environment & Climate vocabulary · Environmental Policy and Law

Carbon pricing

Meaning in environment & climate, with examples

/ˈkɑːrbən ˈpraɪsɪŋ/nounCommon term

In environment & climate, carbon pricing means: Policies that put a price on greenhouse gas emissions, mainly through carbon taxes or emissions trading systems, so that polluters pay and cleaner options become more attractive.

In Turkish: karbon fiyatlandırması

How it is used

An umbrella term in economics and climate policy. Governments introduce carbon pricing; companies face a carbon price, usually quoted in euros or dollars per tonne of CO2. Many companies also use an internal carbon price to test investment decisions.

Example sentences

  1. Many economists see carbon pricing as one of the most cost-effective ways to cut emissions.

  2. Internal carbon pricing at $100 per tonne helps us compare new projects.

Common collocations

  • introduce carbon pricing
  • carbon price
  • internal carbon price
  • carbon pricing mechanism
  • carbon taxA tax charged on fossil fuels or on greenhouse gas emissions, usually set as a fixed amount per tonne of CO2, to make polluting activities more expensive.
  • emissions trading system (ETS)A market-based scheme that sets a cap on total emissions and lets companies buy and sell allowances, each giving the right to emit one tonne of CO2 or its equivalent.
  • polluter pays principleThe idea that whoever causes pollution should pay the costs of preventing it, cleaning it up and repairing the damage, instead of the public paying.
  • Carbon Border Adjustment Mechanism (CBAM)An EU measure that puts a carbon price on certain imports, such as steel, cement, aluminum and fertilizers, based on the emissions released when they were produced.

More terms: Environmental Policy and Law

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