Urgent action is needed to reduce greenhouse gas emissions and prevent the most disastrous effects of climate change. This is why the EU aims to reduce such emissions by 55% by 2030 (compared to 1990 levels), and to achieve net zero emissions by 2050. The EU’s Fit-for-55 package will use measures like carbon prices, regulation and green investment, all of which will affect the economy. But how, and with what economic consequences? In this post we focus on carbon pricing. It is the most effective instrument to reduce emissions because it is targeted at the carbon footprint of the economy. It forces everyone to take ... (full story)