Climate Policies: Tools, Challenges and Obstacles

The climate scientists are in no doubt: we must act now and vigorously if global warming is to be kept below 1.5 degrees relative to preindustrial temperatures.    

What is needed is a steady growing path of substantial and credible carbon prices throughout the world economy and a big programme in green technology investments. Adverse income effects for the poor should be offset with directed transfers. Unfortunately, there is a whole range of obstacles blocking a successful implementation of these policies.