Danny Cullenward is Policy Director at CarbonPlan and a lecturer at Stanford Law School.David G. Victor is Professor of International Relations at the School of Global Policy and Strategy at UC San Diego. He co-heads the initiative on energy and climate at the Brookings Institution.

• Figures and tables vi Preface viii1 A turn toward markets? 12 Ambition 313 Coverage and allocation 524 Revenue and spending 705 Offsets 876 Market links 1037 Getting the most out of markets 1198 Rightsizing markets and industrial policy 1489 Conclusion 174Notes 185Index 232

“Cullenward and Victor provide a refreshingly honest and pragmatic perspective on this complex field. This book is essential reading for anyone interested in climate policy and carbon pricing.”David Wright, University of Calgary“This is a must-read for policymakers, especially the climate intelligentsia who believe that market-based policies are a panacea for the existential threat of climate change. Cullenward and Victor shatter that myth and chart a better course based on proven models that achieve tangible results.”Kevin de León, California Senate President Emeritus“I have spent my career trying to answer the question posed by Cullenward and Victor – how to make climate policy work. This book provides a compelling answer: the deep decarbonization the world needs will only be achieved when governments commit to a vision of transformation that all actors can work towards.”Laurence Tubiana, CEO of the European Climate Foundation, Founder of IDDRI

Danny Cullenward is Policy Director at CarbonPlan and a lecturer at Stanford Law School.David G. Victor is Professor of International Relations at the School of Global Policy and Strategy at UC San Diego. He co-heads the initiative on energy and climate at the Brookings Institution.

• Figures and tables vi Preface viii1 A turn toward markets? 12 Ambition 313 Coverage and allocation 524 Revenue and spending 705 Offsets 876 Market links 1037 Getting the most out of markets 1198 Rightsizing markets and industrial policy 1489 Conclusion 174Notes 185Index 232

“Cullenward and Victor provide a refreshingly honest and pragmatic perspective on this complex field. This book is essential reading for anyone interested in climate policy and carbon pricing.”David Wright, University of Calgary“This is a must-read for policymakers, especially the climate intelligentsia who believe that market-based policies are a panacea for the existential threat of climate change. Cullenward and Victor shatter that myth and chart a better course based on proven models that achieve tangible results.”Kevin de León, California Senate President Emeritus“I have spent my career trying to answer the question posed by Cullenward and Victor – how to make climate policy work. This book provides a compelling answer: the deep decarbonization the world needs will only be achieved when governments commit to a vision of transformation that all actors can work towards.”Laurence Tubiana, CEO of the European Climate Foundation, Founder of IDDRI

Danny Cullenward is Policy Director at CarbonPlan and a lecturer at Stanford Law School.David G. Victor is Professor of International Relations at the School of Global Policy and Strategy at UC San Diego. He co-heads the initiative on energy and climate at the Brookings Institution.

• Figures and tables vi Preface viii1 A turn toward markets? 12 Ambition 313 Coverage and allocation 524 Revenue and spending 705 Offsets 876 Market links 1037 Getting the most out of markets 1198 Rightsizing markets and industrial policy 1489 Conclusion 174Notes 185Index 232

“Cullenward and Victor provide a refreshingly honest and pragmatic perspective on this complex field. This book is essential reading for anyone interested in climate policy and carbon pricing.”David Wright, University of Calgary“This is a must-read for policymakers, especially the climate intelligentsia who believe that market-based policies are a panacea for the existential threat of climate change. Cullenward and Victor shatter that myth and chart a better course based on proven models that achieve tangible results.”Kevin de León, California Senate President Emeritus“I have spent my career trying to answer the question posed by Cullenward and Victor – how to make climate policy work. This book provides a compelling answer: the deep decarbonization the world needs will only be achieved when governments commit to a vision of transformation that all actors can work towards.”Laurence Tubiana, CEO of the European Climate Foundation, Founder of IDDRI