Business Leadership on Carbon Pricing
Global momentum is building for putting a price on carbon emissions as a necessary and effective measure to tackle the climate change challenge. Approximately 40 countries and more than 20 cities, states and provinces use carbon pricing mechanisms or are preparing to implement them. A growing number of business leaders are standing up in support of a price on carbon as an effective way to incentivize low-carbon growth and lower greenhouse gas emissions that are driving climate change.Yet greater leadership is needed if we are to limit global warming to 2 degrees Celsius.
Ahead of COP21 in December 2015 in Paris, The UN Global Compact together with UNEP and UNFCCC secretariat and Caring for Climate strategic partners – WRI, CDP, The Climate Group, UN Foundation and Principles for Responsible Investment – are calling on companies to demonstrate leadership in pricing the cost of carbon emissions as a necessary and effective measure to tackle climate change. The Business Leadership Criteria on Carbon Pricing have been developed to inspire companies to reach the next level of climate performance, and to give recognition to businesses that are at the forefront of advocating for a price on carbon. The Business Leadership Criteria form one of the workstreams of the Carbon Pricing Leadership Coalition led by the World Bank Group and other partners to call for countries and companies to demonstrate strong global support and action toward pricing carbon.
Business Leadership Criteria on Carbon Pricing
The Business Leadership Criteria on Carbon Pricing comprise three distinct but overlapping dimensions: integrating carbon pricing into long-term strategies and investment decisions, responsible policy advocacy, and communication on progress. All three dimensions of the criteria are aligned with limiting the increase in global mean temperature to 2° C above pre-industrial levels.
Consistent with the 2° C global target,companies are invited to indicate alignment with the following criteria:
- 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
Become a Carbon Pricing Champion
Companies that have aligned with the leadership criteria are considered Carbon Pricing Champions. Click here to see a list of Carbon Pricing Champion companies.
Carbon Pricing Champions will have recognition opportunities during milestone UN events in the lead up to the Caring for Climate Business Forum at COP21/CMP11.
How to Indicate Alignment with the Criteria
All companies are invited to align with the Business Leadership Criteria on Carbon Pricing. A company wishing to indicate alignment should:
- 1. Submit a signed letter stating the company’s support of the Business Leadership Criteria on Carbon Pricing and its commitment to align with the criteria. Click here to view a sample letter of support.
- 2. Send the signed letter to email@example.com.
Business & Investors Working Group on Carbon Pricing
Comprising senior corporate experts, investors, civil society, Global Compact Local Networks and partners, Caring for Climate Business & Investors Working Group has been formed to guide the development and implementation of the leadership criteria on carbon pricing. In the lead up to COP21, the working group will contribute to the following specific areas:
- 100 Carbon Pricing Champions: Mobilize businesses worldwide to align with the leadership criteria.
- Dialogue and Local Action: Contribute to driving national and local dialogues in collaboration with Global Compact Local Networks to advance carbon pricing policies.
- Content and Knowledge: Expand and deepen business case for carbon pricing and guide the development of producing an inspirational guide on realizing the Business Leadership Criteria on Carbon Pricing.
For more information and questions, please contact Jayoung Park (firstname.lastname@example.org).