Carbon Markets, EU, Policy and Regulation

Internal carbon pricing can shield businesses from CBAM ‘ripple effect’

Emissions from factory chimneys
One option being introduced by some companies is an internal carbon fee, whereby each part of a business is billed on its carbon emissions (Photo: Manfredxy/Envato)

The EU’s Carbon Border Adjustment Mechanism is triggering creative thinking around pricing emissions

Adopting an internal carbon price that puts a monetary value on a company’s carbon emissions can help businesses manage climate transition risks, according to a report by US-based business membership club The Conference Board.

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