Business Leadership on Carbon Pricing
Global momentum is building for putting a price on carbon. Today, nearly 40 national and 20 sub-national jurisdictions are participating or preparing for a carbon price with some markets already linked. 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. Over 360 institutional investors managing $24 trillion in assets called for pricing that helps redirect investments commensurate with the scale of the climate challenge.
Caring for Climate is a strategic partner to the Carbon Pricing Leadership Coalition led by the World Bank Group. This Coalition brings together leaders from across government, the private sector and civil society to share experience working with carbon pricing and to expand the evidence base for the most effective carbon pricing systems and policies.
What You Can Do
The UN Global Compact together with UNEP and UNFCCC secretariat and Caring for Climate partners – WRI, CDP, The Climate Group, UN Foundation and Principles for Responsible Investment – are calling on companies to become Carbon Pricing Champions by aligning with the Business Leadership Criteria on Carbon Pricing. The Leadership Criteria serve as one of the workstreams of the Carbon Pricing Leadership Coalition led by the World Bank Group and partners.
Become a Carbon Pricing Champion
Carbon Pricing Champion companies commit to align with the Business Leadership Criteria on Carbon Pricing comprising three core elements:
- 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
Align With the Criteria
A company wishing to join as a Carbon Pricing Champion is asked to indicate support to the Business Leadership Criteria on Carbon Pricing:
1. Submit a signed letter stating your company’s alignment and commitment to the criteria. Click here to view a sample letter of support.
2. Send the signed letter with your company’s logo to email@example.com
Executive Guide to Carbon Pricing Leadership
To help companies put their carbon pricing commitments into action, the UN Global Compact and World Resources Institute, together with Caring for Climate partners, released the Executive Guide to Carbon Pricing Leadership: A Caring for Climate Report. The guide, which features insights from more than 100 companies from around the world, is designed for individuals who are now completing due diligence on carbon pricing of behalf of their companies.
Through interviewing more than 15 companies, surveying nearly 100 and gathering input during an open consultation period this fall, the partners found that the top 5 reasons companies price carbon include:
- Preparing for policies affecting the company’s operations or value chain;
- Seeking to achieve ambitious GHG goals, such as science-based GHG targets;
- Translating climate change into financial terms;
- Responding to investor and customer demands; and
- Learning, testing and showcasing effective carbon pricing approaches.
For more on how your company can put a price on carbon, download the Executive Guide to Carbon Pricing Leadership: A Caring for Climate Report.
Business & Investors Working Group on Carbon Pricing
The Caring for Climate Business & Investors Working Group guides the development and implementation of the Business Leadership Criteria on Carbon Pricing. Comprised of senior corporate experts, investors, civil society, Global Compact Local Networks and partners, the working group aims to:
- 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.
More on Carbon Pricing
- Executive Guide to Carbon Pricing Leadership: A Caring for Climate Report (PDF)
- Business Leadership Criteria Brochure (PDF)
- Carbon Pricing Champions (List of Companies)
- Carbon Pricing Leadership Coalition (Website)
For more information and questions, please contact Jayoung Park (firstname.lastname@example.org).