Carbon market is crucial for addressing climate change but unlocking the potential of carbon pricing in reducing emissions requires not only setting a clear policy direction but also overcoming political economy challenges—often a delicate balancing of local concerns, industry interests, institutional capacities, and the prevailing political landscape. In September 2024, PMI launched a report, “Balancing Act: the pursuit of Ambitious Carbon Pricing in Developing Countries” to help practitioners navigate the complex path. The report discusses strategies with case studies from several developing countries.
