4 March 2026

WBCSD sets out advantages of internal carbon pricing

The World Business Council for Sustainable Development (WBCSD) has issued a report, highlighting how companies can leverage internal carbon pricing to manage long-term value, mitigate asset risks and guide capital allocation.

It recommended six actions for advancing internal carbon pricing:

  1. Run a carbon stress test to identify material exposure
  2. Introduce a shadow carbon price into investment decision-making
  3. Escalate internal carbon prices for long-lived investments
  4. Clarify governance and ownership over internal carbon pricing
  5. Build a short-term carbon exposure forecast
  6. Consider internal fees and funds

Full report