Carbon Pricing

Carbon pricing is a way to capture the external cost of greenhouse gas emissions. This is by placing a cost on the carbon that is emitted by organisations. Carbon pricing assists in shifting the burden of the damage caused by greenhouse gas emissions. The damages from the emissions include damages to crops, increased healthcare costs from heat waves and droughts, loss of property due to flooding and sea-level rise, just to name a few of the consequences.

Establishing a price for the emissions creates an economic consequence for the emitters. The emitting corporations can then decide whether to reduce their emissions and therefore the cost or to continue to emit and pay the price.

It is not only corporations that are paying for their carbon emissions, individuals can now voluntarily pay for their impact. Everyday actions both at home and at work produce carbon emissions. These include driving, flying and operating your home. Individual consumers can balance out their emissions by paying for carbon offsets.

Many of the carbon offset projects available include forestry and conservation, investing in renewable energy, converting waste (methane) to energy (electricity) and community projects in underdeveloped communities. The community projects often consist of introducing

energy-efficient methods or technology to communities who need it the most. This means that the communities are becoming more sustainable as well as assisting to lift the communities out of poverty.

Both on a corporation and individual level the practice of placing a price on carbon is directly linked to the United Nations Sustainable Development Goals. All of the 17 goals are connected to carbon pricing, offsetting and credits in some way. However, Goal 13 details the urgent action to combat climate change and its impacts. Goal 12 ensures the sustainable management, consumption and production of natural resources. These two particular goals are important for organisations and consumers to acknowledge and understand as it directly relates to the importance of fighting climate change.

By implementing carbon pricing, carbon credits and offsetting practices an organisation or individual is directly working towards multiple Sustainable Development Goals at the same time.