The number of Asian companies using an internal price on carbon rose ten times over in the last year as a carbon market in South Korea and a planned carbon trading scheme in China pushed firms to take action.
There are now 93 companies in Asia using an internal carbon price, up from just eight last year, according to an annual survey by environmental charity CDP.
The charity says companies are using an internal carbon price to measure their investments in clean energy, to monitor the value of reduced emissions, or to calculate risks from future regulations and carbon pricing frameworks.
"Climate change is now part of mainstream business decision-making and represents a bona-fide
line item in the standard budget assumptions of successful companies," says the report.
Globally, 437 companies employed an internal carbon price in 2015, says the report, up from 150 last year. The report suggests this number is set to rise with an additional 583 firms saying they planned to begin using an internal carbon price in the next two years.
Among the firms planning to employ internal carbon pricing in the next two years was CLP Holdings, China's largest investor-owned power company.
The report revealed a wide spread in how companies valued carbon. Some felt the emission of a ton of carbon dioxide should cost less than a dollar, while others valued it at more than $300.
©2015 funds global asia
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