The path to implementing carbon pricing is fraught with challenges, including financing obstacles, the urgent need to boost supply, and social priorities different from those of more advanced economies with more carbon pricing experience.
This report delves deep into the power sector value chain dynamics, demonstrating how well-designed carbon pricing instruments can be instrumental in helping countries reach their decarbonization goals.
Focusing on how decisions are made in diverse power sector models in several developing countries, this report establishes that the CPI must be carefully positioned at the right regulation point in the power sector’s value chain—rather than merely adding a burden for the sector. Getting it right can influence everything from power generation options to investment decisions and customers’ behaviors.
