Navigating internal carbon pricing to drive decision-making and emissions reduction: three strategies for effective implementation

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Published

07 August, 2023

Type

WBCSD insights

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Authors

Inês Amorim, Senior Associate, Climate Action

Putting a value on greenhouse gas (GHG) emissions in a way that drives positive change is an increasing focus for organizations. Indeed, Internal Carbon Pricing (ICP) can be a powerful tool for incentivizing low-carbon decision-making, while helping companies meet external regulations, such as emissions trading systems. More than an information tool, an effective carbon price must be an integral element of decision-making processes, able to garner consistent buy-in from key stakeholders.

During a recent WBCSD climate peer problem-solving session, member companies identified three key challenges to address:  

  1. Determining the optimal internal carbon price,
  2. Securing buy-in from key decision-makers
  3. Effectively using internal carbon pricing to reduce scope 3 emissions.