Business Leadership on Carbon Pricing
Caring for Climate seeks to mobilize a critical mass of companies around the world to demonstrate leadership on climate action and to become responsible advocates in global and local policy discussions in support of a global climate change agreement to be reached by COP21/CMP11 in 2015.
In the lead up to the UN Secretary-General’s Climate Summit and the related UN Private Sector Forum, the United Nations Global Compact a together with UNEP and UNFCCC secretariat as well as other partners – CDP, The Climate Group and UN Foundation – 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 complement a Statement on Putting a Price on Carbon developed 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
Companies will have recognition opportunities during milestone UN events including at the UN Private Sector Forum of the UN Secretary-General’s Climate Summit (23 September 2014) and in the lead up to the Caring for Climate Business Forum at COP/CMP.
For more information about the UN Private Sector Forum and how companies aligned with the criteria will be featured at the event, please click here.
Why Carbon Pricing?
Carbon pricing is a critical tool to address climate change, and momentum is building to put in place carbon pricing schemes. According to the World Bank Group, nearly 40 countries and more than 20 cities, states and provinces use carbon pricing mechanisms such as emissions trading systems and carbon taxes or are preparing to implement them. Many companies already operate in countries with carbon pricing and use an internal carbon price in their planning and investments; however more leadership is needed if we are to limit global warming to 2° C.
On 23 January 2014, the UN Secretary-General called for Global Compact LEAD and Caring for Climate chief executives to “become advocates for an effective, well-functioning carbon market” across the global economy, and urged business leaders to work with policymakers to advance this agenda. Over 350 companies through the Caring for Climate Leadership Statement call for “the urgent creation, in close consultation with business, community and civil society of long-term policies to create a stable price for carbon”.
For more information or to indicate alignment with the criteria, please contact Jayoung Park (firstname.lastname@example.org).