{WGII SPM C.5.4; WGIII SPM E.4.1} 
Where implemented, carbon pricing instruments have incentivized 
low-cost emissions reduction measures, but have been less 
effective, on their own and at prevailing prices during the 
assessment period, to promote higher-cost measures necessary 
for further reductions (medium conﬁdence). Revenue from carbon 
taxes or emissions trading can be used for equity and distributional 
goals, for example to support low-income households, among other 
4.7 Governance and Policy for Near-Term Climate Change Action
Effective climate action requires political commitment, well-aligned multi-level governance and institutional 
frameworks, laws, policies and strategies. It needs clear goals, adequate ﬁnance and ﬁnancing tools, coordination 
across multiple policy domains, and inclusive governance processes. Many mitigation and adaptation policy 
instruments have been deployed successfully, and could support deep emissions reductions and climate resilience 
if scaled up and applied widely, depending on national circumstances. Adaptation and mitigation action beneﬁts 
from drawing on diverse knowledge. (high conﬁdence)