Working Paper Series

Overview

Current climate policies are falling short of global targets. As global warming accelerates and systemic risks mount, innovative economic solutions are urgently needed. This powerful open-access working paper presents an expanded economic framework and a new market policy, called a ‘carbon reward,” that could reshape how we respond to climate change. The carbon reward policy is designed to incentivize rapid decarbonisation by offering scalable and adaptive financial rewards for carbon dioxide removal (CDR) and conventional mitigation, thereby aligning profit motives with climate objectives.

The expanded economic framework detailed in this paper is designed to address the emerging systemic risks to the global carbon balance, including political intransigence, finance gaps, and earth system instabilities and tipping points. These risks have garnered significant international attention in recent years, and the proposed framework offers a deeper diagnosis of these problems and a practical policy toolkit of ‘carrot and stick’ incentives for improved cooperation amongst diverse stakeholders.

Why Read It?

If you’re a policymaker, economist, climate advocate, or simply someone searching for a bold but pragmatic path forward—this is essential reading. The Carbon Reward policy doesn’t just propose a tweak to existing models. It redefines the rules of the game with tools designed for real-world impact.

This working paper has a fascinating history as Chen's original thinking was a partial inspiration for Kim Stanley Robinson’s best-selling 2020 novel, "The Ministry for the Future.” Set in the near future, the novel explores the efforts of an international organization established under the Paris Agreement to advocate for the rights of future generations in response to dangerous climate change, centering the Carbon Reward Policy.

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