Finance Heather O’Brian - 01/December/2022

Not a silver bullet

Carbon prices at sufficiently high levels can push firms to internalise the costs of greenhouse gas emissions while providing a long-term price signal to drive investments needed for decarbonisation. Emission trading systems and carbon taxes feature in a growing number of climate strategies, but even the most well-designed instruments must be accompanied by other policy measures if emissions reductions goals are to be reached

A number of international markets are introducing carbon markets at different price levels to help reduce emissions


PRICE POINT Many market analysts predict carbon prices of over $100 per tonne across most markets in the near future

TOUGH QUESTIONS Businesses are being asked how they will adapt operations to deal with the growing carbon prices

KEY QUOTE A clear price signal provides companies and investors with greater certainty regarding future price levels for efficient capital allocation ...

 

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