The Policy Practice, in partnership with the Thinking and Working Politically Community of Practice, ODI Global, the International Institute for Sustainable Development and ENERGIA, the international network on gender and sustainable energy, organised a webinar series looking at different aspects of the energy transition from a political economy perspective. 

On 19 February 2026, the International Institute for Sustainable Development hosted a webinar looking at why carbon pricing remains so politically difficult and what kinds of strategies have been most effective in different contexts. 

Carbon pricing is widely recognised as an efficient tool for reducing greenhouse gas emissions, yet it remains intensely difficult to implement due to complex political realities. Despite decades of experience and clear technical knowledge, prices globally often remain low because of deep-seated tensions between short-term public pressures, incumbent industries, and long-term climate goals. Navigating these political economy challenges—from getting the issue onto the policy agenda to designing a system that can survive political transitions—is just as crucial as the technical design of the policies themselves.

Real-world experiences reveal that the durability of carbon pricing relies heavily on clear communication and careful policy design. For instance, if the costs of carbon pricing are highly visible to consumers at the fuel pump but the financial rebates are not, public support can quickly collapse. To build lasting systems, governments must form broad coalitions, integrate social fairness from the start, and treat carbon pricing as an ongoing political project rather than a one-off reform. Managing these shifting stakeholder dynamics ensures that climate policies can adapt, survive changes in government, and strengthen over time.

If you want to go deeper and discover how governments can navigate these challenges and build lasting climate policy, read the full summary of the webinar here.