There is increasing recognition that putting a price on carbon is an essential part of any strategy to combat climate change. 2014 saw a rapid increase in awareness. Seventy-four countries and 23 states, provinces and cities—together responsible for 54 percent of emissions and 52 percent of GDP—joined over 1,000 businesses and investors in signaling their support for carbon pricing.
What are the benefits?
Carbon pricing systems encourage innovation and help ensure sustained economic competitiveness. Leading businesses already recognize this, and have disclosed that they support carbon pricing policies and are building a carbon price into their business operations and investment decisions as a way to prepare for a low-carbon economy.
What is expected of companies that make this commitment?
By making this commitment, companies are agreeing to align with the UN Global Compact’s Business Leadership Criteria on Carbon Pricing:
- Set an internal carbon price high enough to materially affect investment decisions to drive down greenhouse gas emissions;
- Publicly advocate the importance of carbon pricing through policy mechanisms that take into account country specific economies and policy contexts; and
- Communicate on progress over time on the two criteria above in public corporate reports.
Companies who successfully align with the Criteria will join a growing group of Carbon Pricing Champions.