This chapter explores the critical role of market-based instruments in the framework of climate clubs, emphasizing their effectiveness in reducing global emissions while maintaining economic efficiency. Instruments such as import bans and quotas for high carbon emitted products, emissions trading systems, domestic carbon tax, border carbon adjustments, and technical regulations and standards are highlighted as key tools for fostering shared responsibility and promoting sustainable markets. These mechanisms offer valuable insights for policymakers, demonstrating their potential to achieve emission reduction targets and encourage economic competitiveness within a cooperative global framework. The analysis also underscores the importance of aligning these instruments with WTO law to ensure their long-term viability.