Putting a Price on Carbon- The State of Internal Carbon Pricing by Corporates Globally
In a new report, CDP analyses the climate change disclosures from nearly 6,000 companies in 2020 to assess the state of internal carbon pricing by corporates alongside developments in carbon pricing regulation globally-
The research shows that corporate adoption of carbon pricing is rising, with the number of companies using or planning to use an internal carbon price increasing 80% over just five years. This includes nearly half of the world’s 500 biggest companies.
CDP’s analysis found that the median internal carbon price disclosed by companies in 2020 was US$25 per metric ton of CO2e. However, with more countries bringing in carbon pricing regulation, and carbon prices soaring to all-time highs in the EU emissions trading scheme (EU ETS) this year (rising to over €40 / US$44.80 in March), it is clear that corporations need to up the carbon prices they are currently accounting for internally.