Climate change is among the most significant challenges facing humanity. Achieving the 2015 Paris Agreement goal of limiting the rise in world temperature to below 2oC compared to pre-industrial levels will require ambitious action to decarbonise economies and societies. Policymakers have several price and non-price instruments at their disposal to achieve decarbonisation goals. These instruments have different abatement potential and associated costs that need to be quantified to inform policy choices. Policy strategies also need to cushion vulnerable social groups from adverse effects on jobs and livelihoods, so that the transition is cost-effective and socially acceptable. Private sector involvement is crucial, given the large investment needs associated with decarbonisation, as well as international cooperation on policies to achieve common climate change goals while reflecting the specific conditions of different countries.