The Part Where You Actually Change Things (Yes, You)
Alright, we’ve reached the end of the journey. You’ve learned:
- What carbon pricing is and how it works
- Why it’s effective and what benefits it delivers
- Where it’s being implemented globally
- How CBAM is reshaping trade
- When it becomes unavoidable
- Where to find reliable resources
Now comes the most important question: What are YOU going to do about it?
Because here’s the uncomfortable truth: Reading about carbon pricing doesn’t reduce emissions. Action does.
And I know what you’re thinking: “I’m just one person/company/organization. What difference can I make?”
The answer is: More than you think. Way more.
The global shift to carbon pricing isn’t happening because of a few brilliant policymakers in Brussels. It’s happening because thousands of government officials, business leaders, and regular citizens are making decisions every single day that push the system forward.
You’re either part of that push, or you’re part of the resistance (even if passive resistance).
So let’s talk about what YOU can actually do, based on who you are and what power you have.
This is the action plan. No more theory. No more “interesting insights.” Just: Here’s what to do. Go do it.
Part 1: For Governments (Or: You Have The Actual Power, Please Use It)
If You’re Designing a Carbon Pricing System
Congratulations! You have the most important job in this entire equation. The decisions you make in the next 12-24 months will shape your country’s emissions trajectory for decades.
No pressure.
Step 1: Choose Your Mechanism (Tax, ETS, or Hybrid)
Carbon Tax:
- ✅ Pros: Simple, predictable, fast to implement, certain revenue
- ❌ Cons: Uncertain emission reductions, politically challenging
Best for: Countries that need quick implementation, have strong tax administration, value revenue certainty
Examples: Sweden ($130/tonne, working great), Canada (worked until political backlash), Singapore (ramping up aggressively)
Emissions Trading System:
- ✅ Pros: Certain emission reductions, market discovers price, politically easier (initially)
- ❌ Cons: Complex, requires infrastructure, uncertain revenue, price volatility
Best for: Countries with strong regulatory capacity, existing trading infrastructure, need emission certainty
Examples: EU ETS (mature, successful), China (expanding rapidly), California (linked system)
Hybrid (Both):
- ✅ Pros: Flexibility, can optimize for different sectors, risk hedging
- ❌ Cons: More complex, potential overlaps, coordination required
Best for: Large, diverse economies that can handle complexity
Examples: UK (ETS + carbon price support), some Canadian provinces
Your decision matrix:
Implementation speed needed? → Tax
Emission certainty critical? → ETS
Strong tax admin? → Tax
Strong regulatory capacity? → ETS
Revenue certainty important? → Tax
Market price discovery valued? → ETS
Political environment uncertain? → Start small with either, expand later
The mistake most governments make: Trying to design the “perfect” system that addresses every concern. Perfect is the enemy of implemented. Start with something good enough, iterate as you learn.
Step 2: Set Your Coverage (What Gets Priced?)
Sectors to prioritize (high emissions, low administrative burden):
- Power generation (concentrated, easy to measure)
- Heavy industry (cement, steel, aluminum – CBAM-driven urgency)
- Large industrial facilities (threshold: 25,000+ tonnes CO2/year)
Phase 2 expansion (2-3 years later): 4. Transport fuels (tax at distribution point) 5. Buildings (heating fuels, district heating) 6. Waste (methane from landfills)
Phase 3 expansion (5+ years): 7. Agriculture (difficult to measure, politically sensitive) 8. Small sources (high admin burden vs emissions)
Coverage target: Aim for 60-80% of national emissions by Year 5.
The temptation to resist: Exempting “sensitive” sectors. Every sector thinks it’s special. Every sector will lobby for exemptions. More exemptions = less effective system + more distortions + lower revenue + political favoritism.
Better approach: Broad coverage + targeted support for transitions + revenue recycling to address impacts.
Step 3: Set Your Rate (The Most Important Number)
The science (High-Level Commission on Carbon Prices):
- $50-100 per tonne by 2030 to meet Paris Agreement targets
- Start lower, ramp up predictably
Recommended trajectory:
- Year 1: $15-25 per tonne (gentle start)
- Year 2-5: +$5-10 per tonne annually (predictable increases)
- Year 5: $40-60 per tonne (meaningful price signal)
- Year 10: $75-100 per tonne (Paris-aligned)
Critical: Announce trajectory upfront. Predictability matters more than the starting price. Businesses can plan for $100 in 10 years. They can’t plan for “maybe $50, maybe nothing, depends on next election.”
The political economy:
- Too low: Ineffective, revenue wasted, emissions don’t fall
- Too high too fast: Political backlash, industry flight (perceived), vulnerable populations hurt
- Sweet spot: Start lower than ideal, increase predictably, recycle revenue visibly
Price floor/ceiling options: Consider if you want price stability mechanisms (recommended for ETS, not needed for tax)
Revenue Use: Don’t Waste This Opportunity
You’re going to generate billions. What you do with it determines political sustainability.
Option 1: Tax Reform (Revenue-Neutral)
- Return ALL revenue via tax cuts (income, payroll, corporate)
- Carbon tax “replaces” other taxes
- Political messaging: “Taxing pollution, not people”
- Examples: British Columbia (initially), Switzerland
Pros: Politically appealing, economically efficient Cons: Foregoes opportunity for climate investment
Option 2: Direct Dividends (Alaska Permanent Fund Model)
- Equal payment to all citizens
- Quarterly or annual checks
- Visible, popular, progressive (low-income benefit most)
- Examples: Canada (until 2025), Austria (climate bonus)
Pros: Builds public support, addresses equity Cons: Doesn’t fund transition infrastructure
Option 3: Climate Investment (70/30 Split)
- 70% to climate action: Renewable energy, public transit, efficiency, R&D
- 30% to support: Vulnerable populations, just transition, affected workers
- Examples: EU ETS Innovation Fund, California programs
Pros: Accelerates transition, creates jobs Cons: Less politically visible than dividends
Option 4: Hybrid (Recommended)
- 40% direct dividends (public support)
- 40% climate investment (infrastructure)
- 20% social support (just transition)
Why hybrid works: Addresses multiple goals, builds broad coalition
The critical rule: Decide revenue use BEFORE implementation. Baking it into legislation protects it from future governments raiding the fund for general budget.
Implementation Timeline: Your 18-Month Sprint
Months 1-3: Design
- Choose mechanism (tax/ETS)
- Set coverage and rate
- Decide revenue use
- Draft legislation
- Stakeholder consultation (but don’t let it kill momentum)
Months 4-6: Legislation
- Parliamentary process
- Build political coalition
- Address concerns (but don’t death-by-amendment)
- GET IT PASSED
Months 7-12: Infrastructure
- Establish registry (for ETS) or collection system (for tax)
- MRV guidelines
- Third-party verifiers accreditation
- IT systems
- Staff training
Months 13-18: Transition Phase
- Voluntary reporting period
- Test systems
- Build familiarity
- Fix bugs
- Final preparations
Month 19: LAUNCH
Months 19+: Iterate
- Monitor impacts
- Adjust as needed
- Expand coverage
- Increase stringency
The mistake that kills systems: Trying to perfect everything before launch. You learn more in 6 months of operation than 6 years of design.
Better approach: Launch something good, commit to annual reviews and adjustments, iterate based on evidence.
Part 2: For Businesses (Or: This Affects Your Bottom Line, Act Accordingly)
CBAM Prep: The 2026 Deadline You Can’t Ignore
If you import cement, steel, aluminum, fertilizers, electricity, or hydrogen to the EU (or soon, UK), you have work to do before January 1, 2026.
Immediate actions (Do these NOW, not December 2025):
1. Get Authorized CBAM Declarant Status
- Deadline: March 31, 2026 (do it earlier!)
- Process: Apply through National Competent Authority in your EU country
- Requirements: Registration, business verification, compliance commitment
- Timeline: Can take 2-3 months
- Cost of missing deadline: Cannot import CBAM goods after March 31
Action: Assign someone to own this. TODAY. Calendar the application for Q1 2026 latest.
2. Map Your Supply Chain
- Which products are CBAM goods?
- Where are they produced? (country AND facility level)
- What are production processes? (determines emissions)
- Who are your suppliers? (you need emissions data from them)
Action: Create spreadsheet of all CBAM-relevant imports. Get facility-level detail.
3. Get Emissions Data
- Contact suppliers for actual emissions data
- Request third-party verification
- If unavailable, prepare to use EU default values (higher costs!)
- Build data collection process
Action: Email suppliers this week requesting:
- Installation-specific emissions data
- Production process details
- Third-party verification evidence
- Evidence of carbon prices paid (if applicable)
4. Model Your Costs
- Assume €70-100 per tonne CO2
- Calculate for actual emissions (if you have data)
- Calculate for default values (if you don’t)
- Gap = money you’re leaving on the table
Example:
- Import 5,000 tonnes steel/year
- Default value: 2.5 tonnes CO2 per tonne steel = 12,500 tonnes CO2
- Actual emissions: 1.8 tonnes CO2 per tonne steel = 9,000 tonnes CO2
- At €80 per tonne: Default cost = €1M, Actual cost = €720K
- Verification saves €280K/year
Action: Run these numbers. Justify investment in getting actual data.
5. Set Up Compliance Systems
- Accounting systems to track CBAM costs
- Data management for emissions reporting
- Relationship with National Competent Authority
- Quarterly monitoring process
Timeline for 2026:
- Jan 1: Full CBAM operational
- Mar 31: Authorization deadline
- Q1-Q4: Collect verified data for all imports
- Feb 1, 2027: CBAM certificates go on sale
- Sep 30, 2027: First declaration due (covering all 2026 imports)
The businesses winning CBAM: Those who started preparing in 2024-2025. The businesses getting crushed: Those who wait until December 2025 and panic.
Internal Carbon Pricing: Even If Your Country Doesn’t Have It
2,000+ companies already use internal carbon pricing. They’re not doing it for fun—they’re doing it because it makes business sense.
What it is: Assigning a cost per tonne CO2 to emissions, used in decision-making even if no external price exists.
Why it works:
1. Prepares for inevitable external pricing
- CBAM (2026), UK BCA (2027), other countries following
- Better to prepare than be surprised
2. Identifies cost-saving opportunities
- Energy efficiency often has positive ROI
- Emissions reduction = cost reduction
- Internal price helps justify investments
3. Attracts capital and customers
- ESG investors favor prepared companies
- Supply chains prefer low-carbon suppliers
- Customers increasingly care
4. Drives innovation
- R&D focuses on profitable areas
- Low-carbon products have competitive advantage
- First-mover benefits
How to implement:
Step 1: Set Your Shadow Price
- Conservative: $25-40 per tonne (current typical external prices)
- Moderate: $50-75 per tonne (Paris-aligned 2030 target)
- Aggressive: $100+ per tonne (full social cost of carbon)
Recommendation: Start with $40-50, increase $5-10 annually
Step 2: Apply It to Decisions
- Capital investments: Include carbon cost in NPV calculations
- Procurement: Factor carbon into supplier selection
- Product development: Prioritize low-carbon designs
- Real estate: Choose efficient buildings
Step 3: Track and Report
- Internal carbon budget (like financial budget)
- Emissions tracking by business unit
- Report in annual sustainability report
- Transparent about methodology
Companies doing this well:
- Microsoft: $100 per tonne internal fee, revenue funds carbon removal
- Disney: Uses shadow price in investment decisions
- Unilever: €30-60 per tonne for European operations
- Shell: $40-100 per tonne range for project evaluation
The ROI: Companies with internal carbon pricing identify efficiency opportunities worth millions. The price is fictional but the savings are real.
Science-Based Targets: Join the 7,000+ Companies
Science Based Targets initiative (SBTi): Commit to emission reductions aligned with climate science.
Why commit:
- Credibility: Third-party validated targets
- Investor demand: ESG funds prefer SBTi companies
- Customer requirements: Major buyers often require suppliers have SBTi targets
- Competitive positioning: Leaders vs laggards
The commitment:
- Set targets: Scope 1, 2, and 3 emissions reduction
- Get validated: SBTi reviews and approves
- Report annually: Progress tracking
- Achieve targets: Actually hit the goals (no greenwashing)
Target ranges:
- 1.5°C pathway: 4.2% annual emission reduction
- Well-below 2°C: 2.5% annual reduction
- Net zero by 2050: Long-term commitment
How to start:
- Measure baseline: Calculate all Scope 1, 2, 3 emissions
- Model pathways: How to reduce 4.2% annually?
- Set targets: Near-term (5-10 years) + net zero
- Submit to SBTi: Validation process (3-6 months)
- Implement: Execute reduction plan
- Report: Annual progress disclosure
The challenge: Scope 3 emissions (supply chain) typically represent 70-90% of total but are hardest to reduce. This is where supply chain decarbonization comes in.
Supply Chain Decarbonization: The 70% You Don’t Control
The problem: Your Scope 3 emissions (suppliers, transport, product use) dwarf your direct emissions.
The opportunity: Your purchasing power can drive supplier action.
The strategy:
Phase 1: Measurement (Year 1)
- Require suppliers to report emissions
- Use spend-based estimates where data unavailable
- Identify high-impact categories (80/20 rule)
- Establish baseline
Phase 2: Engagement (Year 1-2)
- Share your targets with suppliers
- Request their emissions reduction plans
- Offer support/resources
- Set timeline expectations
Phase 3: Requirements (Year 2-3)
- Supplier emissions data mandatory
- Third-party verification required
- Emissions factor in procurement decisions
- High-carbon suppliers face phase-out
Phase 4: Collaboration (Year 3+)
- Joint reduction projects
- Technology sharing
- Best practice diffusion
- Supply chain innovation
Tactics that work:
1. Supplier Scorecards
- Grade suppliers on emissions, reduction plans, data quality
- Factor into procurement decisions (10-20% weight)
- Reward leaders, support improvers, exit laggards
2. Collaborative Programs
- Offer training on emissions measurement
- Share reduction strategies
- Facilitate access to clean technology
- Co-invest in efficiency improvements
3. Preferential Terms
- Longer contracts for low-carbon suppliers
- Better payment terms
- Volume commitments
- Premium pricing acceptable for verified low-carbon
4. Supply Chain Finance
- Help suppliers access green financing
- Guarantee off-take for clean products
- Co-invest in capital improvements
Companies leading:
- Apple: 100% renewable energy across supply chain goal
- Walmart: Project Gigaton (1 billion tonnes reduction from suppliers)
- Unilever: Supplier emissions halved by 2030 target
- IKEA: Supplier climate action requirements
The leverage you have: Your purchasing power. Suppliers respond when business depends on it.
Part 3: For Individuals (Or: Yes, You Actually Matter)
Advocacy: Your Voice Carries More Weight Than You Think
The myth: “I’m just one person, my opinion doesn’t matter to policymakers.”
The reality: Politicians are desperate to understand public opinion on climate policy. Your voice might be 1 in 1 million, but if only 100 people bother to speak up, suddenly you’re 1 in 100. Those odds are different.
How to be heard:
1. Contact Your Representatives
- Email/call/visit your local representatives
- Specifically support carbon pricing with revenue recycling
- Share personal story (why you care)
- Be specific about policy design
Template: “I’m writing to urge you to support carbon pricing with revenue returned to households. As a [your situation], I understand costs are a concern, but revenue recycling ensures most families come out ahead while addressing climate change. Canada’s carbon dividend model shows this works.”
Frequency: Quarterly is good. Monthly is better. During policy debates, weekly.
2. Submit to Consultations
- Governments typically run public consultations before implementing carbon pricing
- Your submission counts
- Organizations often provide templates/talking points
- Takes 30 minutes, matters
Where to find them: Government websites, CPLC, environmental NGOs
3. Support Organizations Doing the Work
- Citizens’ Climate Lobby (grassroots advocacy)
- Carbon Pricing Leadership Coalition (business/government coalition)
- Regional climate organizations
- Donate, volunteer, amplify their work
4. Vote Accordingly
- Climate policy is increasingly election issue
- Support candidates backing carbon pricing
- Hold elected officials accountable
- Single-issue voting on climate is valid
5. Leverage Professional Networks
- Professional associations can advocate
- Industry groups have policy influence
- Trade unions can support
- Collective voice > individual voice
The impact of advocacy: Canada’s carbon dividend was implemented partly because citizens demanded revenue recycling. Australia’s carbon tax was repealed partly because opposition was loud and support was silent. Silent support loses to loud opposition every time.
Personal Action: Leading By Example
The uncomfortable truth: Your personal emissions matter, but not because they’ll “save the planet.”
They matter because: Personal action creates cultural normalization → Cultural normalization creates political will → Political will creates policy → Policy changes systems.
Actions that actually matter:
1. Reduce High-Carbon Consumption
- Transportation: Electric vehicle, public transit, bike, walk (biggest impact)
- Energy: Renewable electricity, heat pumps, insulation (second biggest)
- Diet: Less meat, more plants (meaningful impact)
- Flying: Reduce flights (if you fly often, this matters)
Not about guilt: About showing it’s possible and creating social proof.
2. Make It Visible
- Talk about your choices
- Share benefits (cost savings, health, quality of life)
- Normalize low-carbon living
- Counter the narrative that climate action requires sacrifice
3. Support Clean Tech Adoption
- Buy electric vehicle (accelerates market)
- Install solar (if feasible)
- Choose renewable energy provider
- Buy low-carbon products
The market signal: Early adopters drive cost reduction → Mass market adoption → Industry transformation
4. Divest and Reinvest
- Move investments to ESG funds
- Divest from fossil fuels
- Support climate-focused funds
- Vote your shares at AGMs
Your money matters: $35 trillion in ESG assets globally because individuals and institutions shifted capital.
What doesn’t matter much:
- Obsessing over every individual purchase (exhausting, minimal impact)
- Guilt about living in modern society (not productive)
- Perfectionism (better to do 10 things 80% well than 1 thing perfectly)
What does matter:
- Consistent choices in high-impact areas
- Visible actions that influence others
- Supporting systemic change through consumption
Professional Contribution: Use Your Day Job
The most underrated climate action: Using your professional skills and position to advance carbon pricing.
By profession:
If you’re in finance:
- Integrate carbon costs into investment analysis
- Advocate for ESG integration in your firm
- Price carbon risk in lending decisions
- Support climate-aligned portfolios
If you’re in operations/supply chain:
- Measure supplier emissions
- Factor carbon into procurement
- Optimize logistics for efficiency
- Drive internal carbon pricing adoption
If you’re in policy/government:
- Advance carbon pricing in your agency
- Support colleagues working on climate
- Provide technical expertise
- Build internal coalitions
If you’re in communications/marketing:
- Normalize climate action messaging
- Highlight low-carbon products
- Combat greenwashing
- Build brand around sustainability
If you’re in legal:
- Support climate litigation
- Draft strong climate policies
- Advise on carbon compliance
- Negotiate climate-aligned contracts
If you’re in tech/engineering:
- Develop clean technologies
- Optimize for energy efficiency
- Build carbon tracking tools
- Innovate on solutions
If you’re in education:
- Teach carbon pricing
- Influence next generation
- Research effectiveness
- Build understanding
If you’re in media/journalism:
- Cover carbon pricing accurately
- Highlight successes
- Explain complexity accessibly
- Hold policymakers accountable
The leverage: You spend 2,000+ hours/year working. If even 10% of that advances climate solutions, that’s 200 hours—far more than you’ll ever do in “personal time.”
How to start:
- Identify how your role touches carbon/climate
- Find 2-3 specific actions you can take
- Build internal support
- Implement incrementally
- Share learnings
Example – Finance professional:
- Year 1: Learn carbon accounting, complete CDP training
- Year 2: Propose internal carbon pricing for capital decisions
- Year 3: Lead implementation, train colleagues
- Year 4: Expand to supplier engagement
- Year 5: Company now carbon-pricing leader in sector
The compounding effect: Your actions → Organizational change → Industry standards → Market transformation → Policy support
Part 4: Your Personal Action Plan (Pick Your Level)
Level 1: Starter (2 hours/month)
Governments:
- Join carbon pricing working group
- Read State & Trends report (exec summary)
- Attend 1 webinar monthly
Businesses:
- Calculate CBAM exposure
- Subscribe to carbon pricing newsletter
- Set up Google Alerts
Individuals:
- Contact representative quarterly
- Switch to renewable energy
- Join 1 climate organization
Level 2: Intermediate (5 hours/month)
Governments:
- Draft carbon pricing proposal
- Stakeholder consultations
- Benchmarking study
Businesses:
- Implement internal carbon price
- Engage suppliers on emissions
- Join CPLC
Individuals:
- Monthly advocacy actions
- Attend local climate meetings
- Professional contribution project
Level 3: Advanced (10+ hours/month)
Governments:
- Lead implementation taskforce
- International engagement
- Build political coalition
Businesses:
- Full CBAM compliance program
- SBTi target submission
- Supply chain transformation
Individuals:
- Organize advocacy campaigns
- Professional leadership
- Major lifestyle shifts
Level 4: Champion (This Is Your Job Now)
Governments:
- National carbon pricing architect
- Regional leader
- International negotiator
Businesses:
- CSO or sustainability executive
- Industry transformation leader
- Public advocate
Individuals:
- Career pivot to climate
- Organizational leadership
- Full-time advocacy
Pick your level honestly: Better to do Level 1 consistently than commit to Level 4 and burn out in 3 months.
Progress over perfection: Start at Level 1. Move to Level 2 when ready. Some people stay at Level 1 forever and that’s fine. Consistent Level 1 beats sporadic Level 3.
The Bottom Line: Do Something. Do Anything. But Do It.
Here’s what I know about you, dear reader:
You made it to the end of a 20,000+ word series on carbon pricing. You care. You’re informed. You understand the stakes.
The question is: What are you going to do about it?
Because caring doesn’t reduce emissions. Action does.
And I get it. The problem feels massive. Your contribution feels tiny. The system feels broken. Progress feels slow.
But here’s what’s also true:
- 80 jurisdictions have carbon pricing because thousands of people pushed for it
- $103 billion in annual revenue because businesses adapted and governments acted
- 28% of emissions covered because early movers proved it works
- 100+ net zero commitments because public pressure made them politically necessary
Every single one of those started with people like you deciding to do something.
So here’s your homework:
Within 24 hours: Pick ONE action from your category (Government/Business/Individual)
Within 1 week: Complete that action
Within 1 month: Pick a second action
Within 3 months: Evaluate progress and adjust
Within 1 year: Look back and see the change you created
The actions don’t need to be huge. Email your representative. Calculate your CBAM exposure. Switch energy providers. Join an organization. Talk to your boss about internal carbon pricing. Attend a webinar.
Just do something.
Because the alternative—knowing what needs to happen and choosing to do nothing—that’s not really an option anymore, is it?
The carbon-priced economy is being built. You can help build it, or watch it get built without you.
Your choice.
But choose action.
Word Count: 4,273 words
Final final thought: If you got to the end of this article and your next thought was “someone should really do something about carbon pricing,” then I have news for you. You’re the someone. There is no cavalry coming. There is no “they” who will fix this. There’s just us. So. What are you going to do?
Answer that question, then do it. The planet (and your grandchildren) will thank you.
Now go. Take action. I’ll be here cheering you on.
