Exploring the role of carbon pricing in achieving a 1.5°C future
The Generation Foundation is an advocacy initiative aiming to mobilize asset owners, asset managers, companies and other key participants in the global economy around the business case for Sustainable Capitalism. One of the key questions the initiative seeks to answer is how carbon pricing can help accelerate the transition to a low-carbon economy and facilitate sustainable global economic growth.
The Generation Foundation teamed up with Navigant in a research partnership spanning three years to tackle carbon pricing from a new angle and explore the role of carbon pricing along value chains up to end consumers.
Navigant is one of the pioneers in carbon pricing and has worked on the topic for nearly two decades. The Generation Foundation is the advocacy initiative of Generation Investment Management, which was co-founded by Al Gore and David Blood in 2004, works on the decoupling of prosperity from resource-intensive growth.
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: in the first report, the experts mapped greenhouse gas productivity along global value chains setting the scene for the next research outputs.
Internal carbon pricing: the team developed two best practice guides to corporate internal carbon pricing together with CDP and presented them 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. In early 2019, further deep dives on the use of internal carbon pricing for green procurement and internal carbon pricing for banks and investors will be published.
Revenue recycling: At COP24, the project launched a report on the role of carbon revenue recycling to 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.