Signal Emissions under carbon pricing up roughly fivefold since 2005

Summary

EY names pricing negative externalities, such as air and water pollution, as one of the strongest levers for steering investment toward natural resources. Carbon pricing is its main illustration of this approach. The volume of emissions covered by carbon taxes or emissions trading schemes has grown roughly fivefold since 2005. EY judges accurate pricing of carbon and other externalities to be likely the most efficient market-based way of aligning capitalism with natural capital. An EY sustainability leader adds that for these markets to work at scale, they need to become interoperable across jurisdictions through standardisation and data integration.