 In order to achieve climate stabilization, governments must invest in research and development, R&D, for low-carbon technologies. This paper links two integrated assessment models to study R&D investment pathways consistent with climate stabilization and suggests a consistent financing scheme. The authors found that timely R&D investment in five low-carbon technologies and energy efficiency measures reduces mitigation costs and generates positive employment effects. Additionally, they showed that carbon revenues are sufficient to both finance the additional R&D investment requirements and reduce distortionary taxation, thus enhancing job creation. This article was authored by Lara Alleluia-Race, Tui Frantisi, Elena Verdellini, and others.