Carbon pricing is a method used to encourage businesses and individuals to reduce their greenhouse gas emissions. It assigns a cost to emitting carbon dioxide, making it more expensive to pollute. This can be done through mechanisms like carbon taxes or cap-and-trade systems, where companies must pay for their emissions or buy permits to emit a certain amount of carbon. By putting a price on carbon, governments aim to promote cleaner energy sources and technologies. This approach helps to internalize the environmental costs of fossil fuels, encouraging investments in renewable energy and energy efficiency, ultimately contributing to the fight against climate change and protecting the planet for future generations.