This Guide has a dual purpose: (i) to provide policy makers and other policy leaders and influencers with a practical tool to help them determine whether a carbon tax is the right instrument to achieve their policy aims; and (ii) to support them in designing and implementing the carbon tax best suited to their specific needs, circumstances, and objectives. Developed within the Technical Work Program of the Partnership for Market Readiness (PMR), it draws on the rich experience of PMR participants, and other countries and subnational jurisdictions that have developed carbon taxes to provide pragmatic guidance on the implications, benefits, and drawbacks of different approaches.