First among these are the short-term costs that mitigation measures may impose on economic actors, whether firms or households. Recent evidence shows these costs to vary widely depending on which policy instruments are used, with taxes and emission permits usually resulting in lower abatement costs (OECD, 2013a).2 Reducing these costs further requires that signals and incentives for mitigation be coherent across policy areas, so that one set of policies does not undermine what the other is trying to achieve. In that regard, addressing climate change is as much about introducing new policies as it is about adapting existing ones.