cop 23 - creating corporate value using the four dimensions of internal carbon pricing

/ ©ECOFYS, A NAVIGANT COMPANY. ALL RIGHTS RESERVED1

COP23 BONN

CREATING CORPORATE

VALUE USING THE FOUR

DIMENSIONS OF INTERNAL

CARBON PRICING

28 SEPTEMBER 2017

/ ©ECOFYS, A NAVIGANT COMPANY. ALL RIGHTS RESERVED2 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED22 / ©ECOFYS, A NAVIGANT COMPANY. ALL RIGHTS RESERVED

GET TALKING FIRST – DISCUSS WITH YOUR NEIGHBOURS

Why is your company or organisation using

(or not using) internal carbon pricing?


COP23 BONN

BEST PRACTICE APPROACH

TO ICP: 4D FRAMEWORK

LONG LAM

28 SEPTEMBER 2017


WE OBSERVE THAT MOST COMPANIES USE ICP FOR ONE OF

THE FOLLOWING THREE REASONS


A 4D FRAMEWORK TO HELP COMPANIES ESTABLISH ICP

APPROACHES IN A BEST PRACTICE WAY

Contribute to a journey of bringing a company’s business strategy in

line with a transition to low-carbon economy


HEIGHT: RISING TO A CARBON PRICE CAPABLE OF CHANGING

DECISIONS IN LINE WITH THE ICP OBJECTIVES

Carbon price setting

approaches

Example of prices to

be used

External resources Mandatory prices or

social cost of carbon

Benchmark against

peers

Carbon prices used by

other companies

Internal consultation Internal testing on

past decisions

Technical analyses Marginal abatement

costs

Choices to make:

1. ICP objectives

2. Form of the carbon

price:

a. Uniform or

differentiated prices

b. Static or evolving

prices

3. Price setting approach


WIDTH: GROW TO COVER ALL GHG EMISSIONS HOTSPOTS IN

THE ENTIRE VALUE CHAIN THAT CAN BE INFLUENCED

Scope 3

Upstream

Scope 2

Power and heat

Scope 1

Direct

Scope 3

Downstream

Global value chain emissions

Upstream Downstream

Need for comprehensive information on:

• GHG emissions profile of the value chain

• Drivers and actors

• Relevant decision types

• Relevant departments and staff members

• Existing initiatives and approaches


DEPTH: BECOME INCREASINGLY INFLUENTIAL TO HAVE A

MATERIAL IMPACT ON BUSINESS DECISIONS

Choices to make:

1. Type of decisions

2. Mechanism of change

3. Level of influence in decisions

4. Degree of enforcement and monitoring


TIME: BE EVALUATED REGULARLY TO BRING THE BUSINESS

STRATEGY IN LINE WITH A LOW-CARBON ECONOMY


FOUR-STEP PROCESS FOR ESTABLISHING AN ICP APPROACH

IN A BEST PRACTICE WAY


TWO BEST PRACTICE GUIDES TO ICP WITH PRACTICAL

EXAMPLES FROM THE FOOD INDUSTRY VALUE CHAIN


BEST PRACTICE GUIDES ARE OPEN FOR PUBLIC

CONSULTATION UNTIL 30 NOVEMBER 2017

The C-suite and How-to Guide to Corporate Internal Carbon Pricing are open

for public consultation until 30 November 2017. Please send your comments

and suggestions to [email protected]

Find the guides at http://www.ecofys.com/en/news/carbon-pricing-unlocked-

new-best-practice-guides-to-internal-carbon-pricing

http://www.ecofys.com/en/news/carbon-pricing-unlocked-new-best-practice-guides-to-internal-carbon-pricing


CONTACT US

MAIN OFFICE

Kanaalweg 15G

3526 KL Utrecht

The Netherlands

T: +31 (0)30 662-3300

WORLDWIDE OFFICES

United States: Boulder, Colorado

Chicago, Illinois

San Francisco,

California

Washington, DC

Europe: Brussels,

Berlin,

Cologne,

Copenhagen,

Denmark

London,

United Kingdom

Asia Pacific: Seoul, South Korea

GENERAL [email protected]

WWW.ECOFYS.COM

LONG LAMSenior Consultant

[email protected]


CONNECT WITH US

ECOFYS.COM

@ecofys

fb.com/ecofys

linkedin.com/company/ecofys

xing.com/companies/ecofysgermanygmbh

slideshare.net/Ecofys

@NavigantEnergy

@NavigantRsrch

linkedin.com/company/navigant-energy

NAVIGANT.COM

https://www.linkedin.com/company/ecofys

https://www.xing.com/companies/ecofysgermanygmbh

https://www.facebook.com/Ecofys

https://twitter.com/Ecofys

http://www.slideshare.net/Ecofys

https://twitter.com/NavigantEnergy

https://www.linkedin.com/company/ecofys

https://twitter.com/NavigantEnergy

cop 23 - creating corporate value using the four dimensions of internal carbon pricing

Environment