• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Earth Wise

A look at our changing environment.

  • Home
  • About Earth Wise
  • Where to Listen
  • All Articles
  • Show Search
Hide Search
You are here: Home / Episode / An Internal Price On Carbon

An Internal Price On Carbon

December 11, 2017 By EarthWise Leave a Comment

https://earthwiseradio.org/wp-content/uploads/2017/11/EW-12-11-17-An-Internal-Price-on-Carbon.mp3

As the world looks to reduce carbon emissions, many companies are dealing with paying for their carbon emissions as part of the cost of doing business.  But apart from the situations in which companies already are required to pay for their carbon emissions, a growing number of companies now build carbon pricing into their business plans even if they are not yet directly paying for their emissions.  This practice is known as putting an internal price of carbon into their business plan.

According to global non-profit climate research company CDP, there are now nearly 1,400 multinational companies factoring an internal carbon price into their business plans.  This number has increased 8-fold just since 2014, when only 150 companies reported carbon pricing in their strategic plans.   The roster of companies includes 100 of the Fortune Global 500 companies as well as many major utility companies.  It includes companies in Europe, Asia, and North America.  The number of US firms has tripled since 2014, and at least 142 additional companies plan to launch such plans by 2019.

Why are they doing it?  To anticipate government legislation on carbon pricing.  To comply with existing regulations.   To justify investments that may have smaller margins without a carbon price.  To manage risk for future investments.  To monetize social cost.  Internalizing the price of carbon helps companies manage risks associated with future regulations and consequences if they do not reduce their carbon emissions.   Setting up internal carbon pricing will be a strong incentive to reduce emissions.

In this country, responsible behavior with respect to emissions control has been largely sidelined by the federal government, but many corporations are dealing with reality and making plans that make sense in a changing world.

**********

 

Web Links

1400 Companies Now Put an Internal Price on Carbon

Photo, posted October 31, 2014, courtesy of Delaware Cooperative Extension via Flickr.

 

‘An Internal Price on Carbon’ from Earth Wise is a production of WAMC Northeast Public Radio.

Tagged With: asia, budgets, business, business plans, carbon, carbon emissions, cdp, Climate Change, companies, consequences, cost, europe, federal government, fortune 500, global warming, government, incentive, internal price, investments, legislation, mandated, multinationals, north america, pollution, price, regulations, required, research, risk management, United States, utility

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Recent Episodes

  • Record Polar Ice Melting | Earth Wise
  • Methane And Wildfires | Earth Wise
  • Plastic Eating Fungus | Earth Wise
  • Explosive Growth Of Electric Vehicles | Earth Wise
  • Life In The Garbage Patch | Earth Wise

WAMC Northeast Public Radio

WAMC/Northeast Public Radio is a regional public radio network serving parts of seven northeastern states (more...)

Copyright © 2023 ·