This paper presents a critical strategic analysis of international carbon pricing and its environmental, economic, and social impacts. This discussion will rely on peer-reviewed articles, policy reports, and empirical studies that have been published between 2007-2024. It examines the effect of carbon taxes and emissions trading systems (ETS) in reducing greenhouse gas (GHG) emissions, technological innovation, and long-term structural change using a systematic literature review and content analysis. Distributional equity, competitiveness, administrative capacity, and risk of carbon leakage are also examined in the study. It also analyzes the complementary tools such as voluntary carbon markets, carbon border adjustments (CBAM), revenue-recycling frameworks and just transition frameworks. It shows that carbon pricing alone cannot be used to achieve the level of decarbonization required to meet international climate targets, but is an important pillar when used in conjunction with more robust regulatory, fiscal and industrial policies. International coordination, better policy design, better revenue utilization and social fairness are important in maximizing the effectiveness and legitimacy of carbon pricing across the globe. This paper provides policy implications to policymakers, scholars, and climate negotiators to develop sustainable and equitable carbon pricing systems.