This primer provides an overview of carbon pricing, including different approaches and types of pricing, implementation mechanisms, pros and cons, trends, and examples.
Carbon pricing is one of many potential mechanisms that companies can use to meet decarbonization targets. The right funding mechanism—or combination of mechanisms—depends on the nature of a company’s goals, risk tolerance, and the stakeholders involved. Companies can explore internal carbon pricing to increase climate fluency across functions while also evaluating external mechanisms for key projects. This primer provides an overview of carbon pricing, including different approaches and types of pricing, implementation mechanisms, pros and cons, trends, and examples.
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