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Without that, businesses could be reluctant to make long term investments in lower carbon technology, Tony Wood, lead author on the report told Guardian Australia.
Bringing forward lower carbon technology, through funding for research, development and deployment, and overcoming information barriers and transaction costs through publicity campaigns, regulation and standards, also have a central role to play.
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The assumption that lower carbon technologies will take decades to come up to speed also seems antiquated.
"We'll continue to diversify our investment in new and existing plant as we firmly believe that it's important to have a broad range of generation assets as we move to lower carbon technologies.
A certain high price of carbon set through a carbon tax is likely to yield more long-lived investments in carbon emissions abatement and lower carbon technologies than an uncertain price of carbon set through a low emissions cap from a cap-and-trade market.
We need families and individuals to change their consumption habits and help make lower carbon technologies available.
The U.S. needs to develop lower-carbon technology and sell it to China and India, an NRDC official says.
And unlike most lower-carbon technologies, it can be installed in a day".
Since coming into office, the Obama administration has encouraged the development of lower-carbon technologies and has sought to increase the fuel efficiency of motor vehicles.
Under one proposal, Congress would give away about half the allowances to businesses like power plants and oil companies, but also to states and farmers, in order to give time for them to adapt to lower-carbon technologies.
Working Group III (on mitigation) said that a global carbon price was needed to provide incentives to invest in lower-carbon technologies but that greenhouse-gas levels could be stabilized at safe levels and at reasonable cost.
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