1.
The Business Case for
Carbon Pricing

2.
Climate Change Presents
Massive Threat to
Economy
• Unchecked, climate change could reduce
global GDP by over 20% by 2100
• US GDP lost to climate change will likely
equal $44 trillion by 2060
• By the end of the century, $280 billion will
be needed to adapt roads and railways
• Global sea levels are projected to rise
another 1 to 4 feet by 2100

3.
Businesses are leading
on climate action
• Nearly half of America’s largest companies have at least
one climate or clean energy target
• Climate Disclosure Project (CDP) found almost 1,400
businesses worldwide, representing about $7 trillion in
annual revenue, have either already implemented an
internal carbon price or will do so in the next two years
• PwC found a majority of businesses (72%) are actively
pursuing renewable energy procurement, and of those
that aren’t (28%), 61% said it was because there was no
mandate or they didn’t see it as strategic

4.
What is a carbon
price?
• A carbon price internalizes the cost of
greenhouse gas emissions by assigning a
monetary value to each ton emitted
• The price can be implemented at different
points throughout the supply chain
• Revenues can be returned to citizens and
businesses through dividends to help offset
higher prices and/or invested to further
reduce emissions, promote resiliency, and
create jobs

5.
Benefits of a
carbon price
• Reduce emissions
• Promote fair competition
• Spur innovation and create jobs

6.
Reduce emissions
• A national, economy-wide carbon
price could reduce emissions to 39%
below 2005 levels
• Significantly greater than the United
States’ commitment under the Paris
Climate Agreement (26-28% from 2005
levels by 2025)
• Statewide bills set prices at different
levels, but impacts will still meaningful

7.
Promote fair
competition
• U.S. energy market does not
accurately reflect fossil fuel costs
and has distorted competitive
market forces
• Failed to account for the costly
environmental damage of
fossil fuels
• Incentivized fossil fuel use
through favorable tax
treatments and subsidies
• A carbon price would allow
renewables to compete fairly $0
$10
$20
$30
$40
$50
$60
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
2015 2020 2025 2030
Projections of the effects of a $25 price on carbon in the
electrical sector
Carbon price Retail electrical prices
Electricity Demand Coal Usage
Natural gas usage Renewable usage
Electricity sector CO2 emissions

8.
Spur innovation &
create jobs
• By 2021, EVs could be cheaper by the mile
than oil-fueled cars
• The amount of deployed MWh of utility-scale
battery storage capacity doubled in 2016
• Increasing demand for renewables will result in
potentially game-changing innovation:
• Floating turbines
• Biophotovoltaic devices
• A study on a national, economy-wide carbon
price found it would create over 2 million jobs

9.
Carbon pricing in
action
• 41 OECD countries and G20 governments
have put a price on carbon, implemented a
cap-and-trade system, or both. Together
with state and local efforts, these programs
cover 15% of the world’s carbon emissions
• With the addition of China’s new system, the
% of the world’s carbon emissions covered
under an ETS should increase by 5-10%
• Specific examples:
• RGGI
• California Cap and Trade
• British Columbia

10.
RGGI
• Member states have reduced
emissions by 15% more than other
states and experienced 4.3% more
economic growth
• Emissions have fallen 40% since RGGI
launched
• Between 2008 and 2016, electricity
prices in RGGI states have dropped by
6.4%
• RGGI has created $2.3 billion in
lifetime energy bill savings for over
160,000 households and 6,000
businesses

11.
California cap and trade
• Since November 2012, state auction
revenue has equaled nearly $4.4
billion
• The California Air and Resource
Board estimates the program will save
the average family $200 per year by
2030
• Projected net economic impacts to
reach nearly $123 million, with 945
jobs created and $5.5 million in
additional tax revenue in the Inland
Empire

12.
British Columbia
• Ranked first among Canadian
provinces for GDP growth in
2016
• Clean energy sector has
developed with over 200
businesses, generating almost
$2 billion in annual revenues
• Between 2007 and 2014, British
Columbia’s real GDP increased
by 12.4%
• Over 160 businesses called for a
carbon price increase after it hit
it’s statutory limit in 2012

13.
SIPA Study
• A $50/ton carbon price would
reduce emissions 40% from 2005
levels by 2030
• Increases in gas prices & electricity
rates do not exceed 10 year peak
• Reinvesting funds had better overall
economic effect

14.
Businesses
support
carbon pricing

15.
Ways to take action
on carbon pricing
• Join our coalition of businesses supporting a
national price on carbon
• Sign an op-ed supporting carbon pricing in your
state
• Support state-based policies – currently looking
for businesses in NH, VT, MA, NY, CT, RI, NJ, MD,
WA
• Host a business roundtable luncheon to educate
other business leaders on carbon pricing
For more information, go to
carbonprice.asbcouncil.org