Carbon pricing has emerged as a key mechanism to reduce greenhouse gas (GHG) emissions, which means that private and public stakeholders are seeking an informed view of how carbon-related price signals can drive global emissions reductions in line with these goals. In 2017, CDP and the We Mean Business Coalition launched the Carbon Pricing Corridors initiative with the aim of enabling large market players to define the carbon prices needed for industry to meet the goals of the Paris Agreement. Many companies and financial institutions are already adapting to this new paradigm by assessing risk within a 2°C constraint and seeking low-carbon opportunities.
The inaugural report was published in May 2017 with a focus on the power sector, considered by some as the foundation of the low-carbon transition. This new report, Carbon Pricing Corridors: The market view 2018, features an update on the power sector a year following the initial inquiry process and a new Corridor for the chemical sector.