Executive summary

The adverse impacts of climate change on human societies and nature are increasingly well-known and highlight the need to accelerate the transition to net-zero greenhouse gas (GHG) emissions, by targeting carbon dioxide (CO2) and other GHGs such as methane, nitrous oxide and fluorinated gases. Cutting and eventually phasing out GHG emissions would limit the adverse impacts from climate change on economies while improving other environmental outcomes such as air and water quality. Delaying the transition towards net zero GHG emissions will maintain dependency on carbon-intensive capital and engender higher future costs. Successfully transitioning to net-zero GHG emissions requires effective mitigation policy packages, which include carbon pricing, a cost-effective policy instrument that also raises revenue that can be deployed to support the transition.