How to set an internal carbon fee
Unlocking the path to credible climate action
Taking action on climate change requires a structured approach that aligns with leading frameworks like SBTi, WWF/BCG, and Gold Standard/Milkywire. This white paper outlines essential steps for setting an internal carbon fee, a critical tool for credible climate action.
In this white paper, you'll find:
How to set an internal carbon fee
What makes a fee credible and effective
Examples of carbon pricing models from other companies
Alternative methods for establishing a carbon pricing strategy
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What is an internal carbon fee and why is it game-changing?
An internal carbon fee isn’t just a buzzword—it’s a transformative strategy that puts your business on the frontlines of climate responsibility. This self-imposed fee, sometimes referred to as a “carbon tax,” takes carbon pricing to the next level by holding your company accountable for every ton of emissions it produces.
By implementing this approach, departments are motivated to innovate and reduce their carbon footprint, while collected funds are reinvested into decarbonization or impactful climate projects. This strategy aligns your business operations with global carbon reduction targets.
Why choose an internal carbon fee over offsetting?
Offsetting has long been a go-to strategy for companies looking to manage their carbon footprint, but it’s time to rethink this approach. The shift toward internal carbon fees is about prioritizing quality over quantity and making genuine contributions to global net-zero goals.
Unlike traditional offsetting, which often leads to a focus on cost over impact, internal carbon fees ensure that your climate contributions are meaningful and aligned with leading frameworks like SBTi and WWF/BCG. This method fosters deeper internal change and long-term sustainability.
How to find the right financing strategy for climate action
Not all companies are created equal when it comes to emissions, which is why your financing strategy needs to be tailored to your specific situation. For high-emission companies, reinvesting profits into reducing internal emissions might be the most effective strategy. For those with lower emissions, supporting external climate projects like carbon removal could make a bigger impact.
Our white paper outlines key considerations for determining the best financing strategy based on your company’s emissions profile, helping you to effectively balance internal reductions with external contributions.
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