There are two types of policies that can be used to fight climate change.
Incentive based policies provide financial incentives to encourage individuals or corporations to become more sustainable. This can look like subsidies on solar panel installation, covering the cost of refitting homes to be more energy efficient, and price reductions on purchasing electric vehicles.
Punishment based policies seek to punish individuals for emissions or environmentally unfriendly behaviour. This looks like carbon taxes, fines for excessive pollution, or regulation that caps the amount of emissions that any entity can emit.