UN Global Compact Calls on Companies to Set $100 Minimum Internal Price on Carbon
UN Global Compact Executive Director Lise Kingo calls on companies to set an internal carbon price at a minimum of $100 per metric ton over time.
New York, April 22, 2016 /3BL Media/ – Today, United Nations Global Compact Executive Director Lise Kingo called on companies to set an internal carbon price at a minimum of $100 per metric ton over time. The announcement was made amid the historic signing of the Paris Climate Agreement by over 165 United Nations Member States at UN Headquarters in New York.
Based on work with approximately 70 companies that have already internalized a price on carbon, the UN Global Compact believes that $100 is the minimum price needed to spur innovation, unlock investment and shift market signals in line with the 1.5 to 2-degree Celsius pathway.
“The Paris Agreement sends a clear signal that business and investors must put climate at the heart of decision-making,” said Ms. Kingo. “We believe that setting a $100 internal price on carbon is one of the most effective ways to drive climate deep into corporate strategy and investment. While leading companies have taken steps to price carbon, we need to see an ascent in ambition and price across the board.”
Underscoring the essential role that the private sector has in achieving a low-carbon and resilient global economy, over 50 chief executives from companies and the investment community will attend a luncheon today hosted by the UN Secretary-General. Organized with the support of the UN Global Compact, the lunch convenes 200 Heads of State and high-level Government representatives with leaders from business, finance, civil society and the UN – focusing on the scale and pace of the market transformation required to achieve a below 2-degree pathway.
“Both Governments and the private sector must align their investments and infrastructure decisions with the below 2 degrees target,” according to UN Secretary-General Ban Ki-moon. “The Paris Agreement gives the private sector an unprecedented opportunity to create the clean energy, climate-resilient economies of tomorrow, today. It provides a durable yet flexible framework. And it answers the private sector’s longstanding call for clear policy signals.”
Also speaking at the luncheon is French President François Hollande, whose Government played a key role in the achievement of the climate accord at COP21 in December.
The UN Global Compact is urging companies participating in Caring for Climate to take a leadership position and adopt the $100 price by 2020. Caring for Climate is the largest coalition of businesses that are taking action on climate. Its Business Leadership Criteria on Carbon Pricing asks companies to take on the triple challenge of setting, advocating for and reporting on an ambitious price on carbon. So far, 68 companies with a total market capitalization of over USD 2.0 trillion across 20 sectors have committed to integrate carbon pricing into corporate long-term strategies and investment decisions.
In 2015, Caring for Climate partnered with the World Resources Institute to release The Executive Guide to Carbon Pricing Leadership to provide insights and best practices for companies to become Carbon Pricing Champions and align with the Business Leadership Criteria on Carbon Pricing set by Caring for Climate and partners.
About the United Nations Global Compact
The United Nations Global Compact is a call to companies everywhere to align their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption, and to take action in support of UN goals and issues embodied in the Sustainable Development Goals. The UN Global Compact is a leadership platform for the development, implementation and disclosure of responsible corporate practices. Launched in 2000, it is the largest corporate sustainability initiative in the world, with more than 8,500 companies and 4,000 non-business signatories based in over 160 countries, and more than 85 Local Networks. www.unglobalcompact.org
About Caring for Climate
Launched by UN Secretary-General Ban Ki-moon in 2007, Caring for Climate is the UN Global Compact, UN Environment Programme and the secretariat of the UN Framework Convention on Climate Change’s initiative to advance the role of business in addressing climate change. It provides a framework for business leaders to implement practical climate change solutions and help shape public policy. Chief executive officers who endorse the initiative are prepared to set goals, develop and expand strategies and practices, and to publicly disclose emissions. The Caring for Climate Business Forum is held every year at the UN Climate Change Conference (COP/CMP), providing a platform for dialogue and action among business, investors, civil society, the UN and Government officials. Caring for Climate is endorsed by over 450 companies from 65 countries. www.caringforclimate.org