Globally there is a growing consensus among governments and corporates on the vital role of carbon pricing in the transition to a decarbonized economy. For governments, carbon pricing, besides being a source of revenue, is an essential element of climate policy that drives emission reduction. For the business community, internal carbon pricing (ICP) is a tool that allows for a reduction in emissions as well as directs investments for more efficient and clean technologies
This report discusses the importance of implementing carbon pricing to achieve net-zero goals. In particular, ICP is brought up as a vital tool to achieving greater emissions reduction.
Having an ICP can enhance an organization's competitiveness. It can also be used in internal business decision-making to essentially perform a cost-benefit analysis of specific projects using a company's own carbon price. Within companies, carbon pricing can drive innovation and improvements.