Businesses prepared to pay price on carbon
According to a new CDP report, in 2013, many major publicly traded companies have integrated an 'internal carbon price' into their business planning.
Companies cite the use of a carbon price as a planning tool to help identify revenue opportunities, risks, and as an incentive to drive energy efficiencies to reduce costs and guide capital investment decisions.
Prices range from US $6-60 per metric ton of CO2e, and companies use varying terminology such as 'internal carbon price', 'shadow price', 'internal carbon fee', 'carbon adder' or 'carbon cost'.
BP, for example, states in its CDP 2013 disclosure:
"The standard cost is based on our estimate of the carbon price that might realistically be expected in particular parts of the world. In industrialized countries, this standard cost assumption is currently $40 per tonne of CO2 equivalent."
ExxonMobil is assuming a cost of $60 per metric ton by 2013. Royal Dutch Shell uses a price of $40 per ton.
In total, CDP has identified 29 companies that are incorporating a carbon price into their strategic planning, including Microsoft, Walt Disney and Google.
For The Ex'tax Project this is of particular interest as it demonstrates that business are anticipating government changes in policy with regard to greenhouse gas emissions, including the introduction of carbon taxes.