Global firms use carbon pricing to reduce emissions, analyze investments, and evaluate risk & opportunities of low-carbon economy

An internal carbon price is increasingly being used by companies across sectors and geographies to translate the risks and opportunities of a low-carbon economy into business decisions. Approximately 1,200 businesses from around the world are either pursuing internal carbon pricing or preparing to do so soon—up 23 percent from 2015. Firms are attempting to grapple with costs of transitioning to more renewable sources of energy, including the cost of implementing those energy sources and the potential damage to their corporate reputations by not transitioning soon or comprehensively enough.

(Refers to: Disney, General Motors, Shell, Microsoft, Rio Tinto, BP, BHP Billiton, Unilever, Mahindra & Mahindra)

Get RSS feed of these results

All components of this story

Report
21 September 2017

Report: The business of pricing carbon

Author: Manjyot Bhan Ahluwalia, Center for Climate and Energy Solutions (USA)

"The business of pricing carbon: How companies are pricing carbon to mitigate risks and prepare for a low-carbon future", September 2017

...Companies across sectors and geographies are turning to an internal carbon price as one tool to help them reduce carbon emissions, mitigate climate-related business risks, and identify opportunities in the transition to a low-carbon economy. Establishing a carbon price across a company can help internalize the cost of greenhouse gas emissions by assigning a monetary value to each ton emitted. The brief describes the business case for internal carbon pricing, the different internal carbon pricing approaches used by companies, and key lessons learned, including: the multiple business benefits of an internal carbon price, the importance of embedding the price in a company’s business strategy, and the benefits and challenges of different types of pricing strategies.

Read the full post here

Article
13 September 2017

USA: Global firms use carbon price as incentives to reduce emissions

Author: Matthew Renda, Courthouse News Services

"With Government Silent, Corporations Price Emissions to Help Fight Climate Change", 13 September 2017

Approximately 1,200 businesses from around the world – including Disney, General Motors and ... Shell – are using various iterations of a carbon price to help contain emissions, analyze investments, reduce risks related to climate change and identify opportunities as the transition to a low-carbon economy moves forward. The business trend is documented by the Center for Climate and Energy Solutions, a Washington-based think tank ... The study argues that chief executives are eager to at least understand the cost of carbon emissions and in some cases take drastic steps to reduce such emissions, with or without leadership from the public sector. ... Some experts believe corporations are voluntarily submitting to carbon fees, shadow pricing and other methods of cost analysis because the scientific consensus on climate change necessitates adaptation to its inevitability.

(Refers to: Disney, General Motors, Shell, Microsoft, Rio Tinto, BP, BHP Billiton, Unilever)

Read the full post here

Article
12 September 2017

Commentary: Companies set their own carbon price to guide decisions

Author: Manjyot Bhan Ahluwalia, Center for Climate and Energy Solutions (USA)

An internal carbon price is increasingly being used by companies across sectors and geographies to translate the risks and opportunities of a low-carbon economy into business decisions. Some companies set a theoretical price on carbon, or a “shadow price,” to evaluate investments, test assumptions, and guide business strategy. Some use a “carbon fee” to assign an explicit monetary value to emissions from business units to change behaviors and raise funds for clean energy and energy efficiency projects... Most companies that have adopted a shadow price use a level higher than current government carbon pricing levels ... to prepare for a transition to a low-carbon world. This is particularly true for companies in the oil and gas and metals and mining sectors... According to 2016 disclosures to the CDP [Carbon Disclosure Project], more than 1,200 companies worldwide are either pursuing internal carbon pricing or preparing to do so soon—up 23 percent from 2015. While most of these companies are based in North America and Europe, more companies in emerging economies, including Brazil, China, India, and Mexico, are exploring carbon pricing. 

(Refers to: Microsoft, BHP, Shell, Mahindra & Mahindra)

Read the full post here