Carbon price

DEFINITION: A pricing system that encourages polluters to reduce their greenhouse emissions by charging for CO2 emitted into the atmosphere. A carbon price usually comes in the form of a carbon tax, or a cap-and-trade system, which allows companies a limited, and falling, number of emissions permits.

See also: Carbon budget

See also: Carbon footprint

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Both SSE and Drax need a healthy carbon price to ensure the economic case stacks up for their hopes of building new gas power stations

UK energy firms call on chancellor to boost carbon tax

Two of Britain's biggest energy companies have called on Philip Hammond to strengthen a carbon tax that has driven a dramatic collapse in coal power generation, arguing it is essential for the shift to cleaner energy.

The statement calls on G20 nations to lead the transformation by “initiating and implementing” and “global paradigm shift” on an energy transition

Global companies call on nations to push for 'well-below' 2C Paris target

More than 50 global companies including Unilever, M&S and Adidas have called on nations meeting in Paris to discuss climate progress, to phase-out fossil fuel subsidies by 2025 and create the framework to limit global warming increases to well below 2C.

edie has provided a round-up of the areas where Chancellor Philip Hammond could deliver for the green economy

Autumn Budget preview: Five green policy hopes ahead of Philip Hammond's statement

A new levy on plastic packaging? Higher taxes for diesel vehicles? Multi-million-pound spending on EV charging infrastructure? edie previews the green-related announcements likely to be included in the Autumn Budget on Wednesday (22 November).

Experts say it will be vital for the Chancellor to maintain a “meaningful” carbon price in the Autumn Budget next Wednesday (22 November) if the UK is to meet its climate change pledges

UK surges into top 10 low-carbon electricity rankings

Britain has for the first time entered the top 10 rankings of a league table which compares large and industrialised countries on the carbon content of power supplies.

At a global level, the report claims that the evolution of generation and storage technologies makes the growth of renewables “unstoppable”

Pricing mechanisms needed to secure renewable energy acceleration, report finds

Falling costs in renewable energy technologies has put the UK on course to meet its 2030 renewables development objective, but a higher carbon price market is needed to spur acceleration, a new report from global IT consultancy Capgemini has found.

Businesses are also pushing to provide input into the Facilitative Dialogue, which outlines what increased ambitions will be issued as part of the next round of NDCs. Image: BMUB

Carbon price among policy wishlist issued by businesses at COP23

Members of the World Business Council for Sustainable Development (WBCSD), including the chief executives of more than 200 international businesses, have called for governments to collaborate with the private sector to set meaningful carbon prices and improve climate resilience.

Lord Stern noted that businesses and government's weren't good at

Lord Stern: Flexible policy approach will catalyse low-carbon transition

Lord Nicholas Stern has called on governments across the world to implement "predictably flexible" policy frameworks that enable businesses to map investment opportunities during the transition to a low-carbon economy.

Scrapping the carbon price support would reduce total electricity costs by around £2.6bn annually

Higher carbon price needed to phase out UK coal generation by 2025

Following plans with Canada to launch global alliance to encourage nations to phase-out coal use, the UK Government has been informed that a carbon price of £40 per tonne may be required to shut down all remaining coal plants by 2025.

CDP notes that nearly 500 companies are potentially vulnerable to the effects of carbon pricing regulation through their failure to internalise the cost into their business

CDP: Huge leap in multinationals adopting internal carbon price

A new CDP report has highlighted an 8-fold increase in the number of large multinational factoring an internal carbon price into business strategies over the past four years.

Schroders estimates the current global price to be roughly $1.60 a tonne of CO2e

Carbon tax could wipe out polluters' profits in pursuit of Paris targets

More than $1.5tn (£1.2tn) in company profits worldwide could be erased by taxes required to meet the Paris climate agreement, according to analysis by Schroders.

The members are calling for a cap of 550g of CO2 per kwh for generators receiving capacity mechanism subsidies in the EU

Energy giants back calls to cut financial support for polluting powerplants

A coalition of thirteen energy industry firms, including Siemens, Shell and Total, have launched a new joint initiative to limit the amount of state aid subsidies that are sent to highly-polluting fossil fuel plants across the European Union (EU).

Europe's major utilities companies are

Power sector urged to adopt world's first investment-grade carbon pricing mechanism

Financial heavyweights including Bank of America, Barclays and Hermes Investment Management have teamed-up to introduce the world's first investment-grade carbon pricing system for the power sector, aimed at aligning company operations with a 2°C pathway.

The coalition aims to expand carbon pricing to cover 25% of global emissions by 2020

Coalition calls for worldwide carbon price to avert climate crisis

A group of 200 organisations including national governments and global businesses has echoed calls for an international carbon pricing system to put the world on the path to meet a 2C climate change target.

The document said that leaving the loophole open risked 133 million tonnes of unearned carbon credits falling into governments hands

Leaked paper exposes EU countries' abuse of climate loophole

European Union countries exploited loopholes in United Nations forestry rules to pocket carbon credits worth €600 million and the equivalent of global-warming emissions from 114 million cars.

Scenarios were modelled on the impact on nuclear, coal and gas supply and was unable to examine impacts on technologies that operate under the Renewables Obligation (RO)

What would happen if Britain had no carbon price support?

Research from Imperial College London - commissioned by UK power station operator Drax - has found that operating without a carbon price would have increased Britain's carbon emissions by 21%, levels not seen since the 19th Century.

Did Chancellor Philip Hammond's 2017 Budget announcement fulfil the hopes and expectations of environment and sustainability professionals?

Budget 2017: The green business reaction

Did Philip Hammond pull any big green surprises out of his little red box today? Or were key sustainability issues once again placed on the back-burner in the Chancellor's Spending Review? Here's the full industry reaction, as it comes in...

Chancellor Philip Hammond delivered his first Spring Budget speech this afternoon, but it contained little for sustainability professionals to get excited about

Budget 2017: Chancellor confirms electric vehicle funding, announces new recycling targets

BREAKING: Key proposals on the future of carbon pricing, renewable energy subsidies and air quality remain on the UK Government's 'to-do' list as Chancellor Philip Hammond offered relatively little for the green economy to get excited about in his 2017 Budget this afternoon.

Dr William Kyte OBE proposed the creation of a UK-based ETS scheme which mirrors the EU model

Does Brexit offer a ‘golden opportunity’ to pursue EU ETS alternatives?

With MPs set to vote on the final amendments of the bill to withdraw the country from the European Union (EU), the debate surrounding the UK's future involvement in the EU Emissions Trading System (ETS) has intensified this week with a lively debate in Parliament.

Brown said that his goal is to create a global emissions trading system. Image: European Parliament

EU and California to discuss linking carbon markets

The EU and California are beginning talks to potentially create a common carbon market that could also include China.

Renewable energy in the supply chain

This new report focuses on the opportunity for companies to amplify their carbon reduction efforts by driving renewables through their supply chains. Given how easy it is to choose renewable electricity in the UK, businesses could be doing more to engage with their suppliers.

Under the proposal, a $40 carbon tax, rising over time, would be levied on emissions in order to encourage a shift towards renewable energy sources such as solar and wind

Exxon, BP and Shell back carbon tax proposal to curb emissions

Oil giants ExxonMobil, Shell, BP and Total are among a group of large corporations supporting a plan to tax carbon dioxide emissions in order to address climate change.

Industrial strategy fit for the future: perspectives on building a competitive UK economy

This publication brings together the views of respected thinkers from politics, business, trade unions and academia on the kind of economy the industrial strategy should be building and the role low carbon and resource efficiency can play.