Reducing Risk, Addressing Climate Change Through Internal Carbon Pricing – A Primer for Indian Businesses

Undertaken By: World Resources Institute,    Recent Publication: 2018

At a time when many countries have set targets to reduce emissions by 2030 as part of their Nationally Determined Contributions, the importance of the role played by corporations in driving sustainable business models that supplement global efforts is greater than before. A growing number of businesses around the world are turning to internal carbon pricing as a tool to manage climate-related risks and transition to a low-carbon economy. There are early signs that internal carbon pricing is also making inroads into forward-looking Indian businesses. While internal carbon pricing can support company efforts to reduce emissions and manage risk, Indian companies reported a need for targeted guidance on how to implement such schemes in a manner suitable to the Indian context.

To help address this challenge, this primer provides a seven-step approach for developing and implementing an internal carbon-pricing scheme. The primer is based on the experience of five Indian companies to develop carbon-pricing schemes, on a survey of 30 additional Indian companies, and on desk research. It seeks to help organizations navigate carbon-price discovery and implementation while building an understanding of the boundaries, costs, savings, policies, and risk mitigation and innovation opportunities involved