The need for environmental action is as urgent as it is necessary, and significant financing is required to ensure a societal transition can occur. The polluter pays principle stipulates that those responsible for causing and profiting from pollution should also be those required to cover the costs of its damage, and to take steps to prevent and control this pollution. 

This principle is enshrined in the EU treaty, and is a motivating economic force across compliance and voluntary carbon markets, which assign a cost value to greenhouse gas emissions. 

Carbon Market Watch strongly endorses this principle, which ensures that a just societal transition can occur. Our work closely evaluates how effectively the polluter pays principle is being enforced in both words and actions.