Should those who suffer from climate change be the ones paying for it?
Droughts, heatwaves, crop losses, and property damage — the impacts of climate change already come with a very real cost for society. But who should actually bear this cost?
This is the question addressed by carbon pricing — a key climate policy tool that assigns a cost to greenhouse gas emissions, reflecting the damage they cause to society. Through carbon pricing mechanisms, the financial burden is shifted from those who suffer the consequences to those responsible for the emissions that drive climate change.
Putting a price on emissions creates incentives for businesses to reduce their carbon footprint and invest in clean technologies. Today, the “polluter pays” principle is widely implemented across developed economies through carbon taxes or emissions trading systems (ETS).
According to the World Bank, as of 2024, 75 countries have implemented carbon pricing mechanisms, including 39 countries with emissions trading systems and 36 countries with carbon taxes — covering around 24% of global greenhouse gas emissions. In the European Union, the EU Emissions Trading System (EU ETS) is the largest and most effective example of such a mechanism. According to the European Commission, in 2023 the EU carbon market contributed to a historic 16.5% reduction in emissions in the energy and industrial sectors, while revenues from the sale of emission allowances exceeded €43.6 billion.
Ecoaction supports the introduction of a transparent, fair, and environmentally effective emissions trading system in Ukraine.
We also analyse the role of carbon credits as a carbon pricing instrument, aiming to prevent greenwashing practices and ensure real emission reductions rather than reductions “on paper.” Carbon credits may be particularly relevant for Ukraine, as they can potentially unlock additional financing for green projects.
In our work, we systematically monitor international carbon pricing practices, produce analytical materials, and actively engage in public discussions. Our goal is to ensure that implemented mechanisms are transparent, aligned with national climate goals, and contribute to genuine greenhouse gas emissions reductions.