First, it reflects on a common understanding of carbon pricing metrics, highlighting the incentives to decarbonise and cross-country variation in carbon prices, a key determinant of international spillover effects and competitiveness concerns. Second, the report analyses the appropriate mixes of climate change mitigation policies, emphasising the pivotal role of carbon pricing as the only policy implementing the polluter pays principle while generating revenues.

Third, it analyses how international organisations can support the coordination of policies to maximize positive and limit negative cross-border spillovers from climate change mitigation policies. Finally, it discusses how such coordination can help to scale up climate action by closing the transparency gap (by countries agreeing on enhanced reporting and transparency of their policy and economic environment related to climate change mitigation), the implementation gap (by countries agreeing to implement certain policies and policy instruments, such as fossil fuel subsidy reform) and the ambition gap (by countries coordinating on enhanced levels of ambition, ideally along with the policies to achieve these goals).

The report of the Joint Task Force on Climate Action, Carbon Pricing and Policy Spillovers, with participation by the IMF, OECD, UNCTAD, World Bank and WTO, makes four main contributions to working together for better climate action.