Carbon pricing aims to reduce greenhouse gas emissions by making it more expensive for polluters to emit carbon dioxide and other greenhouse gases.

A cap-and-trade system sets a limit on the total amount of greenhouse gases that can be emitted and allows companies to trade permits to emit carbon dioxide and other greenhouse gases.

A carbon tax sets a fixed price on carbon emissions, while a cap-and-trade system sets a limit on the total amount of greenhouse gases that can be emitted.

Carbon offsetting allows companies to reduce their carbon footprint by investing in projects that reduce emissions, helps to create a market for carbon credits, and provides a financial incentive for companies to reduce their emissions.

Some of the challenges associated with carbon pricing and emissions trading schemes include setting an appropriate carbon price, ensuring that the schemes are effective in reducing emissions, and addressing the potential for carbon leakage.

Sweden was the first country to implement a carbon tax in 1991.

The European Union's Emissions Trading System (ETS) is a cap-and-trade system for greenhouse gas emissions.

The Clean Development Mechanism (CDM) under the Kyoto Protocol is a mechanism that allows developed countries to offset their emissions by investing in emission reduction projects in developing countries.

Carbon pricing and emissions trading schemes can help countries meet their emission reduction targets, promote the development of low-carbon technologies, and create a level playing field for businesses.

Some of the key considerations for designing an effective carbon pricing and emissions trading scheme include setting an appropriate carbon price, ensuring that the scheme is transparent and accountable, and addressing the potential for carbon leakage.

Some of the potential benefits of carbon pricing and emissions trading schemes include reducing greenhouse gas emissions, promoting energy efficiency, and encouraging the development of low-carbon technologies.

Some of the potential challenges of carbon pricing and emissions trading schemes include setting an appropriate carbon price, ensuring that the scheme is effective in reducing emissions, and addressing the potential for carbon leakage.

Some of the key design features of a carbon pricing and emissions trading scheme include the scope of the scheme (which sectors and greenhouse gases are covered), the type of carbon pricing mechanism used (carbon tax or cap-and-trade system), and the level of the carbon price.

Some of the key challenges in implementing carbon pricing and emissions trading schemes include setting an appropriate carbon price, ensuring that the scheme is effective in reducing emissions, and addressing the potential for carbon leakage.

Some of the key policy considerations for designing and implementing carbon pricing and emissions trading schemes include the distributional impacts of the scheme, the impact on economic competitiveness, and the potential for carbon leakage.