Powering into the future with carbon pricing

Powering into the future with carbon pricingIn the past few years, energy provider Exelon has become one of the main proponents of the new climate economy, managing to eliminate over 17.5 million metric tonnes of greenhouse gas emissions in 2013—an impressive seven years ahead of its 2020 deadline. [1]

How did they do it? Besides focusing predominantly on nuclear power, natural gas and clean energy generation, the company developed an abatement cost curve that would allow them to visualize all potential opportunities for carbon reduction and analyze how much it would cost to implement them. This pushed Exelon to continuously search for and invest in the most cost-effective low-carbon solutions, always including technology-specific calculations of carbon prices to determine the rate of return on investment and leading to a focus on nuclear power, natural gas and clean energy generation. (CDP response 2014) [2]

Exelon considers carbon pricing alongside traditional financial metrics when making capital investment decisions. [3]  By factoring in the cost of carbon, the company develops its own internal resilience, planning in advance for future risks and unexpected challenges. This allows it to confidently move into the low-carbon market while retaining an advantaged position over its competitors. The company is convinced that supporting the regulation of carbon emissions should be an essential component of any forward-thinking business strategy. [4]

[1] http://www.greenbiz.com/blog/2014/06/27/companies-speak-out-putting-price-carbon
[2] http://www.exeloncorp.com/PowerPlants/energy/generation/generation.aspx
[3] https://www.cdp.net/CDPResults/global-price-on-carbon-report-2014.pdf
[4] http://www.greenbiz.com/blog/2014/06/27/companies-speak-out-putting-price-carbon

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