Post by CO2 IQ

💼 Internal Carbon Pricing on the Rise!! More companies are turning emissions into a cost factor – and for good reason. Internal carbon pricing helps manage transition risks, align capital spending with climate goals, and accelerate decarbonization across operations and supply chains. 📊 According to the latest World Bank State and Trends of Carbon Pricing 1,753 companies across 56 countries are now applying an internal carbon price – nearly double the number just 3 years ago. 🧮 Three types of internal carbon pricing are in use: 1️⃣ Shadow Price: Notional carbon cost used in investment and risk analysis; 2️⃣ Internal Fee: Real monetary charge used to fund decarbonization activities; 3️⃣ Implicit Price: Derived from actual abatement costs for internal benchmarking. 💶 Price levels vary significantly: ▪️ 25% of companies apply < USD 20/tCO₂e; ▪️ 15% apply > USD 130/tCO₂e; ▪️ Microsoft and Swiss Re are moving towards USD 200/tCO₂e. 📈 Internal carbon pricing is becoming a mainstream tool for climate-smart business and financial decisions: It helps to prepare for a world, in which compliance instruments are expanding.   📖 Read more in the The World Bank report – link in comments 👇 #CarbonPricing #ESG #ClimateRisk #NetZero #Finance #CorporateSustainability #InternalCarbonPricing