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NewsPlaybook provides a practical guide on how to develop and apply an internal carbon price

24 May 2024 | 3 min

As many CEOs focus on their companies' decarbonisation journey, understanding the true cost of carbon to their business has become a priority. Strategic carbon pricing is a key tool to support decision making that aligns the company with its sustainability and climate change commitments.

Aurecon formed part of the Climate Leader’s Coalition’s working group to prepare the 'Carbon Pricing for Decision Making' playbook. It is designed to support leaders as they take meaningful steps to address their emissions profile by developing and applying an internal carbon price.

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Aurecon formed part of the Climate Leader’s Coalition’s working group to prepare the Carbon Pricing for Decision Making playbook.
Aurecon formed part of the Climate Leader’s Coalition’s working group to prepare the Carbon Pricing for Decision Making playbook.
Aurecon formed part of the Climate Leader’s Coalition’s working group to prepare the Carbon Pricing for Decision Making playbook.
Aurecon formed part of the Climate Leader’s Coalition’s working group to prepare the Carbon Pricing for Decision Making playbook.

At its core, the playbook emphasises the benefits of applying a carbon price for emissions, a fundamental cornerstone of any sustainable strategy. Noting that many companies have already embarked on a journey of strategic decarbonisation. However, without evaluating the true cost of carbon to the business, achievement of desired decarbonisation targets is not guaranteed.

Strategic carbon pricing means businesses can understand the risks and opportunities and take decisive steps to decarbonise. Carbon pricing can become a lever to drive behavioural change and to actively align the company with its sustainability and climate change objectives.

“Building internal carbon prices into their decision making changes behaviour, creates a more resilient business, and contributes to a sustainable world for future generations.”

Ben Power, Principal, Energy & Carbon, Aurecon

The first step towards achieving this goal is quantifying the carbon footprint of operations, products, and services. By measuring carbon emissions, leaders gain invaluable insights into their company's impact, business risk and opportunities for the climate transition. Armed with this knowledge of the potential cost implications, they can make informed decisions to reduce emissions, optimise processes, and embrace renewable energy sources.

In addition, costing carbon emissions opens the door to a broader set of carbon market solutions, where companies can trade carbon emission reduction units and foster innovative initiatives.

The publication explores the methodologies for applying a carbon price, the benefits of implementing carbon reduction strategies, and how to integrate sustainability into the core operations of your company – with a carbon price representing a powerful mechanism for driving awareness, engagement and transformational change.

The Climate Leaders Coalition’s 'Carbon Pricing for Decision Making' playbook is now available on Climate Leader’s Coalition’s website.

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Corey Monk, Aurecon
Corey Monk

Group Director, Brand, Marketing & Communications