It makes a series of recommendations for policymakers in terms of both strategic considerations and policy design. Whether for business or poor households, the authors look at how compensation can deliver win-win outcomes and protect those affected while fostering a transition towards a greener, more energy efficient economy while ensuring that compensation is time-limited and subject to regular review. Given that environmental taxation is a cross-cutting issue, this chapter recommends the involvement of key government ministries and agencies in the policy process to facilitate interministerial consensus and the involvement of industry stakeholders to highlight potential benefits for business and garner industry support during the policy process. Implementing tax escalators or linking tax rates to inflation or gross domestic product (GDP) growth can help maintain the incentive effects of environmental taxes over time, while implementing such taxes over a long time horizon signals to investors that a policy is stable and predictable, and may thus encourage investment in low-carbon, energy-efficient and pollution-reducing technologies.