Carbon pricing has emerged as a critical policy tool in global climate change mitigation strategies by internalizing the costs of carbon emissions and incentivizing emission reductions. This review assesses the role of carbon pricing in climate change mitigation, highlighting its effectiveness, challenges, and opportunities. Carbon pricing mechanisms, including carbon taxes and emissions trading systems (ETS), have gained traction globally as governments seek to reduce greenhouse gas emissions. These mechanisms create economic incentives for businesses and individuals to reduce their carbon footprint. The effectiveness of carbon pricing depends on factors such as the stringency of pricing mechanisms, coverage of sectors and gases, and complementary policies. Studies show that well-designed carbon pricing policies can lead to significant emission reductions while promoting innovation and investment in clean technologies. However, carbon pricing faces challenges such as equity concerns, competitiveness, and political acceptability. Distributional impacts on vulnerable populations and energy-intensive industries must be carefully addressed. International cooperation is essential for the success of carbon pricing, as emissions can shift across borders in response to pricing disparities. Global efforts to harmonize carbon pricing mechanisms and establish international carbon markets can enhance the effectiveness of mitigation efforts. Carbon pricing plays a crucial role in aligning economic incentives with environmental objectives. While it offers significant potential for reducing emissions and fostering a low-carbon economy, addressing challenges such as equity and promoting international cooperation is essential. By integrating carbon pricing into comprehensive climate policy frameworks, policymakers can accelerate progress towards a sustainable and resilient future.Carbon pricing has emerged as a critical policy tool in global climate change mitigation strategies by internalizing the costs of carbon emissions and incentivizing emission reductions. This review assesses the role of carbon pricing in climate change mitigation, highlighting its effectiveness, challenges, and opportunities. Carbon pricing mechanisms, including carbon taxes and emissions trading systems (ETS), have gained traction globally as governments seek to reduce greenhouse gas emissions. These mechanisms create economic incentives for businesses and individuals to reduce their carbon footprint. The effectiveness of carbon pricing depends on factors such as the stringency of pricing mechanisms, coverage of sectors and gases, and complementary policies. Studies show that well-designed carbon pricing policies can lead to significant emission reductions while promoting innovation and investment in clean technologies. However, carbon pricing faces challenges such as equity concerns, competitiveness, and political acceptability. Distributional impacts on vulnerable populations and energy-intensive industries must be carefully addressed. International cooperation is essential for the success of carbon pricing, as emissions can shift across borders in response to pricing disparities. Global efforts to harmonize carbon pricing mechanisms and establish international carbon markets can enhance the effectiveness of mitigation efforts. Carbon pricing plays a crucial role in aligning economic incentives with environmental objectives. While it offers significant potential for reducing emissions and fostering a low-carbon economy, addressing challenges such as equity and promoting international cooperation is essential. By integrating carbon pricing into comprehensive climate policy frameworks, policymakers can accelerate progress towards a sustainable and resilient future.