Companies Turn to Carbon Pricing as Part of Climate Action
Credit: PHOTO BY: DIGIFLY840 (PIXABAY)
C2ES Report Highlights Goals and Options for Businesses
Companies across sectors and geographies are turning increasingly to an internal carbon price to prepare for climate-related business risks, and guide and fund investments in low-carbon solutions.
Setting a price on carbon encourages companies to reduce their emissions, and carbon pricing is therefore essential to achieve the central goal of the Paris Climate Change Agreement, which is to limit global temperature rise to as close as possible to 1.5 degrees Celsius.
A new brief published by the Center for Climate and Energy Solutions (C2ES), The Business of Pricing Carbon, examines how companies are using internal carbon pricing – either through an explicit fee on business-related carbon emissions that can fund carbon-reducing projects, a theoretical “shadow” price to guide investment decisions, or a hybrid of these approaches.
For example, Microsoft business groups pay a fee, from $5 to $10 per metric ton, on the carbon emissions associated with their electricity consumption and employee air travel. The revenue is used to buy renewable energy, increase energy efficiency and e-waste recycling, and buy carbon offsets. In 2015, Microsoft received a Momentum for ChangeLighthouse Activity Award for its innovative carbon program.
Among the brief’s key findings:
“Many companies are leading the way toward a low-carbon future. They see the risks of climate impacts to their businesses and the opportunities to create jobs and increase their competitiveness through clean and efficient energy,” said C2ES President Bob Perciasepe. “Internal carbon pricing is one innovative tool more companies can explore to show sustainability leadership to their shareholders, employees, and customers.”
Read the full C2ES report here.
For more information on Microsoft's carbon fee, click here.
Published on: 13 September 2017
PHOTO BY: DIGIFLY840 (PIXABAY)
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