National governments are increasingly looking to carbon pricing as a way to reduce emissions and meet their Paris commitments. They are doing so through a range of approaches, including carbon taxes and emission trading systems. Responding to the momentum, more companies are implementing carbon pricing, even when not required under law. They see it as a way to prepare for current and future policies and regulations, to reduce other climate-related risks, to respond to investor concerns, and to encourage innovation.
Reducing Risk, Addressing Climate Change Through Internal Carbon Pricing: A Primer for Indian Business responds to demand from Indian companies for targeted guidance on how to implement such schemes in a manner suitable to the Indian context. The report provides a seven-step approach for developing and implementing an internal carbon-pricing scheme, based on the experience of five Indian companies in developing carbon-pricing schemes, a survey of 30 additional Indian companies and additional desk research. It seeks to help organizations navigate carbon-price discovery and implementation while building an understanding of the boundaries, costs, savings, policies, and risk mitigation and innovation opportunities involved.