Pricing Carbon

24/05/2022

How do you price a tonne of carbon?

So you're thinking about offsetting? BUT there is a problem: there are so many offset providers out there with multiple projects to offer,  each with a different price tag for a tonne of carbon, how do you make sense of it all?

Here’s a breakdown of how a tonne of carbon can be calculated and how it affects the pricing of other projects.

1. To start, there’s no “one size fit all” way of pricing carbon. In fact, there are 64 “sizes” and counting.

2. Carbon pricing shows a clear upward trend. The trend shows a rising recognition of  the true value of a tonne of carbon. 

3. Why are there different ways to value carbon? Pricing carbon means estimating the CURRENT price that companies will pay for the FUTURE damages that their carbon emissions will bring to the environment. This makes it tricky to give an exact value, because it’s essentially an estimated forecast for the future. Mix in the varied views of economists, governments and businesses on these costs and damages and it’s difficult to find a consensus.

4. The carbon pricing methodology plays a big role in the price you pay for each project. These prices reflect different views on the “true” cost of carbon that the project saves, demand for a particular project type and location, and not the number of trees it has actually planted or solar panels it built. 

There’s no glossy way to put it, the journey to carbon neutral is tough, and saving the planet… even tougher!

One thing we do absolutely know for sure though, is that we are not helpless in the fight against climate change. Businesses need to take action with a combined approach of carbon offsetting initiatives, and setting up strategies to directly cut their own carbon emissions.

You can start your journey today. In 3 easy steps, our comprehensive carbon calculator will help you identify your businesses carbon footprint, and we provide a free  downloadable report that will help you take action immediately (link to calculator).

Good for Business. Great for the Planet.