In this episode, Martin Daum speaks with Prof. Dr. Ottmar Edenhofer, Edenhofer is the director and chief economist of the Potsdam Institute for Climate Impact Research. He is also a professor for Economics of Climate Change at the Technische Universität Berlin and is considered one of the leading German climate economists. Together, they discuss the topic of carbon pricing as a measure to combat climate change. In the beginning of this year Germany introduced a national emissions trading system for the heating and transport sectors. As of January 1st, carbon emissions due to fossil fuels have a fixed price of € 25 per tonne of CO2- which will increase to 55€ per tonne by 2025. Companies using fuels such as petrol, natural gas or coal must acquire corresponding certificates for emission allowances. Martin Daum and Prof. Dr. Ottmar Edenhofer examine why carbon pricing is indispensable, which countries should urgently apply a similar system and how carbon neutral transport can be achieved.