A new category of ReducedRisk Products (RRPs) has emerged in recent years, which has the potential to reduce the risks associated with smoking. The World Health Organization (WHO) has taken a firm stance against this new category of products, generally advocating that regulators treat them as equivalent to conventional, combustible tobacco products. Whilst consuming RRPs might not be as conducive to public health as stopping smoking altogether, they do provide smokers1 with greater choice, and importantly, a valuable and tractable option to better manage their exposure to smoking-related risks, which could make a positive contribution to public health. At present, the regulation and fiscal treatment of these new products is diverse and evolving. With these products gaining popularity over the years, Japan Tobacco International commissioned Oxford Economics to analyse the economic and policy landscape for RRPs. To do so, we assess the WHO’s position on RRPs and provide an overview of the existing regulatory and fiscal landscape that surrounds them. We then discuss the potential implications of a highly precautionary policy approach to RRPs, and propose some overarching principles that policymakers should consider for optimal outcomes.