Carbon pricing

Posted by on set 17, 2014 in Sustainability Mission | 0 comments

Carbon pricing

Global corporate use of carbon pricing

CDP Report Summary

Companies in the US and worldwide are already advanced in their use of carbon pricing. They are ahead of their governments in planning for climate change risks, costs and opportunities. These companies want, and are calling for, clear pricing and regulatory certainty to help them plan their climate-related investments, and they want to see more certain, internationally linked carbon markets.

COMPANIES AROUND THE WORLD ARE USING A PRICE ON CARBON.*

  • The world’s largest companies are climate ready. In the US, despite having no federal regulatory price on carbon, 29 major companies, including Dow Chemical Company, Bank of America and ExxonMobil, are incorporating a carbon price into their business planning and risk management strategies. Globally, 150 companies that report to CDP are using carbon pricing as a tool to drive investments in greenhouse gas (GHG) emissions reductions.
  • From putting a price on carbon to participating in global carbon pricing markets, companies are expecting, and preparing, for regulation:
    1. 496 global companies that disclose to CDP are part of a global trading scheme; 96 (nearly 20%) of these are US companie.
    2. 69 US companies disclose that they are already participating in the European Union Emissions Trading Scheme (EUETS).
  • Global companies doing business in China and Korea, including Alstom, Bayer and Canadian Tire Corporation, are closely monitoring emerging Chinese emissions trading systems that will soon price carbon on a mandatory basis.

CARBON REGULATION PRESENTS BUSINESS OPPORTUNITY.

  • European companies such as Lafarge and Rockwool International and others covered by the EUETS, which prices carbon on a mandatory basis, want to see the system stabilize and improve to help protect long-term investments and expand profitability.
  • 638 companies disclose that regulations related to carbon pricing (cap and trade & carbon taxes) present an opportunity for their businesses. By contrast, some companies in developing countries, especially heavy emitters, such as Arcelor Mital South Africa, ÇİMSA ÇİMENTO SANAYİ VE TİCARET A.Ş. and PPC Ltd., continue to feel competitively disadvantaged by carbon pricing.

*For the purpose of this report we identify a company as using an internal price on carbon if they specifically disclosed using an internal price or if they disclosed internalizing a market price in their business operations, risk management and/or investment decisions.

Read the full report here.

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