Climate Policy in Iran and the Case for Carbon Pricing

Iran has committed to a 4% reduction target by 2030;but as the Iranian economy is fossil fuel based, carbon dioxide (CO2) emissions have continued to surge over the last decade. In this paper, we consider whether carbon pricing could help Iran to achieve its Paris targets. First, we describe current climate-related policies in Iran and survey relevant academic literature on their effectiveness. We then review carbon pricing designs in five countries with a comparable development status to Iran. Finally, we consider whether Iran’s current climate policies are adequate and what role carbon pricing could play in a future climate policy mix. The results of this study should enhance an understanding of Iran’s climate policy, which thus far has received little attention in research;and can be put to immediate use in shaping a sustainable climate policy strategy for Iran.