Carbon pricing – in the form of a carbon tax or an emissions trading system – has become a tool increasingly used by governments to address climate change. There’s also growing momentum in the private sector. The latest C2ES report, “The Business of Pricing Carbon,” finds that companies across sectors and geographies are increasingly adopting internal carbon pricing as one tool to prepare for the business-related physical and transition risks of climate change and take advantage of the opportunities in a low-carbon future. As an indicator of this trend rising on the corporate agenda, as of 2017, almost 1,400 companies disclosed to the CDP that they are currently using an internal carbon price or plan to do so in the following two years.
When on Wednesday evening I left the Carbon Forum North America (CFNA) I felt a rare sense of hope and intellectual excitement. It was not only the inspiring commitment of many political and business leaders to meaningfully tackle carbon emissions or the shared agreement displayed in many panels on the way forward. There was a belief that despite the results achieved in many businesses, national and subnational realities, there is a lot more that can be done if we use the right key(s). The type of keys I am looking at are behavioral ones.
The momentum for climate action is strengthening across the financial sector, with pension funds, banks and asset managers embedding climate change impacts into mainstream finance activities. On the one hand, the financial industry is reacting to carbon pricing regulations, which exposes investments in fossil-fuel companies and other carbon-intensive industries to previously unforeseen costs. On the other hand, the recognition that physical climate change impacts are becoming a systemic risk across the broader economy makes powerful stakeholder groups, risk departments and valuation teams more attentive to the link between a changing climate and asset value. Finally, the need to disclose climate change-related risks by corporates is also being advocated or required by regulators, encouraged by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures. Given the Turkish government’s considerations of introducing national carbon pricing legislation at some point, the case for pricing exposure to carbon for an institution like Garanti Bank is apparent.
The Latin America and the Caribbean region is moving quickly to introduce market incentives as a component of their climate change mitigation policy, for example, 24 countries have identified fiscal measures as a tool to implement their Nationally Determined Contributions (NDCs). However, without a doubt, the Pacific Alliance countries are leading the region.
Mexico City, Mexico, 18 October 2017 – Achieving the goals of the Paris Climate Change Agreement and true sustainable development will take broad-based engagement, especially by the private sector to drive innovation and investment, participants at the opening of Latin American and Caribbean Carbon Forum (LACCF) in Mexico City were told.
Success in addressing climate change will require a shift in investment toward clean infrastructure and technologies. Countries in adopting the Paris Climate Change Agreement recognized this, and now look more and more to the private sector and non-state actors for engagement. With less than three weeks to go before the start of this year’s Latin American and Caribbean Carbon Forum (LACCF 2017), UNFCCC Newsroom sat with James Grabert, Director of the Sustainable Development Mechanisms Programme and lead officer of the Marrakech Partnership for Global Climate Action at UN Climate Change, to discuss this year’s event, its importance, and its place in the international response to climate change.
In India, Mahindra & Mahindra became the first Indian company to announce an internal carbon price of USD 10 per ton of carbon emitted. Mahindra & Mahindra Ltd. (Mahindra), a utility vehicle and farm solutions provider, is the flagship company of the Mahindra Group. It has committed to reduce its carbon intensity by 25% until 2019 against base year 2016 and the investments through the carbon pricing mechanism will help it achieve its goal.
The OECD report Investing in Climate, Investing in Growth released today shows that there need not be a trade-off: combining climate change and pro-growth measures, and in some countries a judicious recycling of carbon tax revenues, can lead to long-term inclusive growth as part of a “decisive transition” to decarbonisation
Over the last year, students have been organizing and lobbying across the country around carbon pricing. While the climate crisis can seem intimidating to the generation that will face its most significant impacts, young leaders are uniting to pass strong policies through the Put A Price On It campaign.
In recent months, a testcase with carbon pricing has been carried out with three medium sized enterprises (SME’s) from the province of North Brabant, the Netherlands. The participants calculated their carbon footprint and gained insight into what a price on CO2 means for their own business.
As the co-chairs of the Carbon Pricing Leadership Coalition (CPLC), we want to accelerate climate action and reaffirm our commitment to carbon pricing. The discussions in Germany are a great opportunity to keep the momentum going.
I4CE has published a series of three Climate Briefs on the management of climate-related risks by financial actors, focusing specifically on three questions:
- Why should financial actors align their portfolios with a 2°C pathway to manage transition risks?
- How could financial actors manage their exposure to climate risks?
- How should financial actors deal with climate-related issues in their portfolios today?
This blogpost rapidly summarizes these three Climate Brief presents an overview of the topics covered and the main conclusions. The three briefs are available on the I4CE website.
As the leading business association dealing with climate change in Australia, the Carbon Market Institute has been at the centre of policy discussions to ensure a business voice is represented in the design and implementation of effective and stable climate policy. This article describes how the inevitability of reformed energy and climate policy in Australia, and new low-carbon developments in the Region, have reignited the debate about the country’s low-emissions future.
The Carbon Pricing Leadership Coalition (CPLC) launched a new initiative to progress the use of carbon pricing as a tool to enable the shipping industry’s decarbonisation and switch away from fossil fuels. The initiative will be co-chaired by Johannah Christensen (Director, Global Maritime Forum) and Tristan Smith (UCL/UMAS), supported by CPLC Partners including the World Bank Group and the International Monetary Fund.