Nov. 17, 2015—Putting a price on carbon emissions is the fastest way to push companies to become more environmentally friendly, corporate executives say.
More than eight in 10 chief executives want international leaders to provide a clear roadmap and timeline on future carbon pricing mechanisms at the United Nations climate negotiations in Paris next month. NRG Energy Inc. and toolmaker Stanley Black & Decker already use internal carbon pricing, an estimate of what their carbon emissions cost, to help make operating decisions, according to the Carbon Disclosure Project.
But ahead of the negotiations in Paris next month, business leaders, activists and governments around the world are pressing international leaders to take another look at systems that put a market price on carbon emissions. Carbon pricing or market systems, they say, would give companies a financial incentive to reduce emissions.
Three-quarters of CEOs polled said they believe carbon pricing is essential to accelerating corporate actions in this area, according to the survey. Moreover, 84 percent said they believe sufficient carbon price tags will drive investments in energy efficiency and renewable resources. Still, just 31 percent said they thought governments need to phase out fossil fuel subsidies to further clean energy efforts.
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