This report intends to provide policy makers in developing countries with a "beginner's guide" to implement carbon pricing and fossil fuel subsidy reform policies, informing them about the best practices, lessons learned, comparative advantages and distributional impacts such policies. The paper will also particularly analyze the impact of carbon policies on vulnerable groups and recommend solutions to increase effectiveness of the policies studied. 

This report is part of UNDP's Don't Choose Extinction campaign. It is one of three reports that, together, form a policy toolkit to support countries design and implement fair fossil fuel reforms and carbon pricing policies. It is therefore complemented by the following two reports:  Fossil Fuel Subsidy Reforms: Lessons and Opportunities and Alternative Uses of Pre-tax Fossil Fuel Subsidies per Year.