State and Trends of Carbon Pricing 2023

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• Facing a global energy crisis and high inflation, many countries responded with relief measures: lowering energy prices for businesses and households through changes to energy taxes, fossil fuel subsidies, or price controls, or by making direct payments.
• These measures saw already high levels of government debt continue to climb.
• Despite these challenges, there was continued momentum for climate action. Several highemitting countries strengthened domestic climate policies and targets, though global efforts still fall short of what is required.
• In this context, the political economy of carbon pricing has become even more complex.

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