Internal carbon pricing and its unseen benefits

  • Adjusting the profitability of fossil fuel-based investments, using sensitivity analysis
  • Evaluating non-carbon-related risks of carbon-intensive investments
  • Assigning a shadow price to each ton of projected carbon emissions, when evaluating electricity-generation projects. The bank priced the emissions at USD5–10 per ton until 2020 (expecting them to gradually rise to USD74 per ton by 2030), arrived at through benchmarking industry peers, monitoring the European Union Emissions Trading Scheme and adjusting prices in line with those in the respective jurisdictions

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Acuity Knowledge Partners

Acuity Knowledge Partners

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We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/