Eight things your CEO needs to know to engage and shape carbon pricing policies

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The momentum for carbon pricing is growing around the world as putting a price on CO2 emissions is broadly recognized as the most effective mechanism to help transition towards a low-carbon economy. More and more governments, investors and major businesses, including high-emitting sectors, are publically voicing their support to carbon pricing instruments. Regardless of these encouraging elements, a global price on carbon is not likely to be adopted soon and disparities between national or regional carbon pricing instruments are expected to remain for the years to come. At the same time, businesses and investors require a level playing field across international markets and clear economic signals to shift towards low-carbon investments and build a long-term competitive advantage. During this transition period, business leaders should, as many are already doing, proactively drive the change in the ongoing discussions with governments and policymakers. This report is a practical guide that aims to support business leaders in their journey towards carbon pricing policies. It is based on literature reviews and the results of an online survey sent in June 2015 to collect the positions of WBCSD members companies. Understanding why carbon pricing mechanisms are critical and how companies should engage in shaping carbon policies begins from eight important elements outlined in our document.

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