Carbon Pricing and Taxation

Carbon pricing is an instrument that captures the external costs of greenhouse gas (GHG) emissions. Instead of dictating who should reduce emissions where and how, a carbon price provides an economic signal to emitters, and allows them to decide to either transform their activities and lower their emissions, or continue emitting and paying for their emissions.

For governments, carbon pricing is one of the instruments of the climate policy package needed to reduce emissions. Businesses use internal carbon pricing to evaluate the impact of mandatory carbon prices on their operations and as a tool to identify potential climate risks and revenue opportunities. Finally, long-term investors use carbon pricing to analyze the potential impact of climate change policies on their investment portfolios, allowing them to reassess investment strategies and reallocate capital toward low-carbon or climate-resilient activities.

This sample content also incorporates a predefined process template with manual data input and automatic calculation activities to run the model in production as well as for what-if simulation purposes.