Caring for Climate has identified three connected criteria required to mobilize a critical mass of companies around the world to demonstrate leadership on climate action through advocating a price on carbon.
The three-point plan includes integrating carbon pricing into long-term strategies and investment decisions, responsible policy advocacy, and effective communication on progress made. These 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 leading the move to a proper 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 calling for countries and companies to demonstrate strong global support and action toward pricing carbon.
Carbon pricing is a critical tool to address climate change, and momentum is building around the world to put in place pricing schemes. Carbon emissions must be priced at a level which reflects their real cost to societies and economies, for example through immediate pollution effects and the long-term onset of severe climate change impacts. 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.
In the lead up to the UN Secretary-General’s Climate Summit, the UN Global Compact and Caring for Climate partners — CDP, The Climate Group, UN Foundation and WBCSD — are calling on companies to demonstrate leadership in pricing the cost of carbon emissions as a necessary and effective measure to tackle climate change.