How-To Guides For Corporate Internal Carbon Pricing

Four Dimensions to Best Practice Approaches

Published: 19/09/2017

Internal carbon pricing (ICP) is a multifaceted tool that can support companies in assessing climate-related risks and opportunities in the transition to a low-carbon economy. ICP allows companies to identify and act on the risks and opportunities that accompany this transition, as also recommended by the Financial Stability Board Task Force on Climate-related Financial Disclosures (FSB-TCFD). Internal carbon pricing gives risks and opportunities a monetary value—consolidating them into a uniform metric such as carbon costs or benefits. This enables financial decision makers, such as the chief financial officer, to make the low-carbon transition an integral part of rational, economic decision-making.

However, the full potential of internal carbon pricing is often not well understood or insufficiently embedded in the daily decision-making process. Based on findings from the Carbon Pricing Unlocked research partnership, Ecofys, a Navigant company, the Generation Foundation and CDP have developed practical guidance for companies and enable a wider use of best practice approaches to ICP globally.

A how-to guide gives concrete guidance for establishing an ICP approach, while a special C-suite version helps board members to identify the most appropriate solution to their company. The guides complement existing guidance by providing a new 4D framework to approach ICP, combined with the latest insights and experiences gathered through interviews with leading companies in the food industry value chain.

[Update: since December 2017, this page provides the final reports from the research.]

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