We partnered with Guidehouse in a research partnership spanning three years to tackle carbon pricing from a new angle and explore how governments, investors and businesses could unlock the power of carbon pricing to rapidly reduce emissions.
The project delivered quantified insights into the role carbon pricing can play in achieving the goal of a 1.5°C future, specifically on:
- Greenhouse gas productivity: the first report mapped greenhouse gas productivity along global value chains, setting the scene for the next research outputs.
- Internal carbon pricing (ICP): the project produced two best-practice guides to corporate internal carbon pricing together with CDP and presented each at New York Climate Week. The C-suite guide aims to inspire board members to explore internal carbon pricing as a way to create corporate value. The How-to guide provides practical advice to the corporate team implementing internal carbon pricing. Building on these guides, a deep-dive paper on Internal Carbon Pricing for Low-carbon Finance was published in collaboration with CDP in July 2019. An additional briefing paper on Internal Carbon Pricing for Future-proof Supply Chains followed in January 2020, which included a 4-page briefing note for procurement and supply chain professionals.
- Revenue recycling: At COP24, the project launched a report on the role of carbon revenue recycling for effective carbon pricing. The report highlights that revenues raised can both increase support for the carbon pricing policy and lead to further emissions reductions.
In 2020, the CPU partnership came to a close with a two-part webinar series that highlighted the latest practical insights on ICP. The webinars included a summary of our publications and discussed what could be next for ICP to unlock its full potential.