Publication / 17 Jan 2018

Carbon Pricing: Discover Your Blind Spots on Risk and Opportunity

Understanding carbon pricing risk exposure is essential to managing business risk and building resilience to intensifying global climate policies.

Following commitments under the Paris Agreement to limit global warming to 2 degrees Celsius, governments are increasingly imposing a price on carbon, shifting the cost of greenhouse gas (GHG) emissions from society to the source of pollution.

Pricing carbon provides an incentive to reduce GHG emissions and invest in low-carbon technologies. While current carbon prices average around USD 40/tCO2, they are expected to increase in the near future, reaching up to USD 120/tCO2 by 2030 in Organisation for Economic Co-operation and Development (OECD) countries under a 2 degrees Celsius-aligned scenario.

The growing carbon price could affect companies directly with regulatory costs imposed on their operations through energy and fuel price increases, or indirectly through costs passed on by suppliers. These costs may be borne by companies or passed on to consumers in the form of higher prices. Rising prices, along with the increased cost of using carbon-intensive products such as motor vehicles, may depress consumer demand.

5 June, 2018
Events The Economist Sustainability Summit Chicago – 5th June 2018

From resources to capital markets: Long-term strategy for a short-term world. It's time to raise the sustainability bar and sharpen the focus.

Find out more
15 May, 2018
Events EHSS Connect18 US – 15th May – 16th May – Nashville

American UL User Forum event returns to Nashville, TN

Find out more
1 May, 2018
Events The Sustainability Consortium Summit – 1st May – 3rd May – Chicago

This event is due to take place at the Radison Blu Aqua Hotel from the 1st – 3rd May 2018 TSC’s annual Summit is unique from the typical sustainability conference. Why? TSC members are passionate, highly-engaged, and looking for real solutions. Summit attendees are typically those who are on the front lines of the...

Find out more

VIEW ALL NEWS & INSIGHTS