Emerging Practices in Internal Carbon Pricing | A Practical Guide

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Calls for “putting a price on carbon” to address global warming are becoming loud and clear. With an increasing number of greenhouse gas regulations around the world that effectively put an external price on carbon and growing societal demands for corporate responsibility in mitigating climate change, companies are facing a global patchwork of carbon constraints. To navigate these challenges, many are turning to internal carbon pricing to support decision-making about their current and future carbon footprint. Internal carbon pricing is a means for companies not only to manage risks but also to pursue opportunities. Towards fostering the change from “business as usual”, this report presents emerging practices in internal carbon pricing and a pragmatic, 5-step guide for implementing a price on carbon within your company. It covers the two complementary approaches, “shadow price” and “carbon fee”, as well as their respective outcomes and contribution to supporting long-term climate strategy.

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