Is the Philippines ready for carbon pricing?

THE impacts of climate change continue to escalate, bringing economic instability, disrupting natural systems, creating geopolitical conflicts, and affecting the lives of millions of people, which include loss of life, humanitarian crises, and even the unalterable damage to ecosystems as highlighted by the Intergovernmental Panel on Climate Change's Sixth Assessment Report. The inevitable consequence also includes the temperature rising that would require rapid emissions reductions across all sectors. Though efforts and attempts to avert this environmental dilemma by shunning greenhouse gas emissions have been gaining momentum, the threat remains stark. Addressing this perilous occurrence needs wide-ranging assessment and commitment from people from all walks of life. In this regard, carbon pricing, which is an instrument towards decarbonization or low carbon economy, controls greenhouse gas emissions (GHGs) by placing a fee on high-emitters and offering incentive programs for low-emitters. This price signal generated shifts in utilization and investment designs, creating financial growth congruent with climate protection.

What is the essence of carbon pricing? Why is it creating a magnetic force to attract government and business actors in the world?