Everything you wish you knew before writing a sustainability report
February 8, 2022
An economic mechanism that assigns a monetary cost to greenhouse gas (GHG) emissions, typically measured per metric tonne of carbon dioxide equivalent (CO₂e). The goal is to incentivise reductions in emissions by making polluters financially accountable for their environmental impact.
Some examples of carbon pricing measures include:
- Carbon tax: A fixed price per tonne of CO₂e emitted, paid directly by polluters.
- Cap and trade: An emissions trading system where a cap on emissions is set, and companies can trade emissions allowances.
- Internal carbon pricing: A voluntary system where companies assign a carbon cost to internal operations to drive low-carbon investments.
