Options for a Carbon Pricing Reform

This paper Options for a Carbon Pricing Reform shows that introducing carbon pricing in Germany requires taking a threefold perspective: first, the point of convergence for a carbon pricing reform is a harmonized European carbon pricing system; secondly, Germany should rapidly implement a national carbon pricing reform as an intermediate step to achieve its national targets under the EU Effort Sharing Regulation; thirdly, the European carbon pricing reform should become the basis for successful, international climate negotiations. With this reform, Germany and Europe have the opportunity not only to advance European climate policy but to strengthen their positions in international negotiations.