Average carbon prices could increase more than seven-fold to $120 per metric ton by 2030 as regulations are introduced by national, state and city legislators to achieve the Paris Agreement goal to limit global warming to 2°C.
Libby Bernick, Global Head of Corporate Business and Rick Lord, Lead on ESG Management and Value Creation, both Trucost, part of S&P Dow Jones Indices, discuss how globally diverse operations could be impacted by taxes and emissions trading – and identify opportunities to cut carbon emissions and capitalize on the low-carbon transition.
It is becoming widely accepted that high-carbon activities present considerable threats to social, environmental, and financial stability. Carbon pricing mechanisms such as emissions trading schemes, taxes on carbon or fuel, and the removal of fossil fuel subsidies can help provide the incentives needed to change company behaviour.
More companies than ever before are setting carbon reduction targets, but much greater ambition is needed to achieve the two degree goal to limit global warming in the Paris Agreement on climate change.