This chapter presents analysis of the various national and international policy instruments for tackling climate change, their respective pros and cons, and how they can best be integrated into a coherent policy framework. It assesses carbon taxes, emissions trading schemes (including cap-and-trade), standards, and technologysupport policies (R&D and clean technology deployment) according to three broad cost-effectiveness criteria: i) Static efficiency, i.e. does the instrument help fully exploit existing low-cost abatement opportunities, ii) Dynamic efficiency, i.e. does it encourage innovation in order to lower future abatement costs? iii) Ability to cope effectively with climate and economic uncertainties. The chapter concludes with a discussion of potential complementarities and overlap across policy instruments.