This report examines three financial policies to reduce emissions: carbon pricing, renewable energy auctions and capital market policies. Its focuses are on how these policies have been implemented in practice and the policy decisions governments must make when designing and implementing these policies.
The first part of the report discusses the main design features of a carbon tax. The second part of the report discusses renewable energy auctions in Malaysia, the United Kingdom and South Africa. It argues that in all three cases, these auctions have significantly increased renewable electricity generation capacity and reduced its costs. The third part of this report examines capital market reforms to limit climate change
