Carbon pricing is a policy instrument for climate change mitigation that relies on harnessing market forces. Carbon pricing can be used in conjunction with other policies, and it offers unique advantages shared by no other policy in the climate change mitigation policy toolkit. There are two ways of implementing carbon pricing: via a tax or a cap. Globally, we now have extensive experience with both carbon taxes and carbon cap-and-permit systems. These systems can be designed to address environmental justice concerns, and they can be adjusted incrementally to be more ambitious and meet science-based greenhouse gas reduction targets. Since an ambitious and effective carbon pricing program will raise prices for consumers, a well-designed program will recycle program revenue back to households as dividends.