Impact of Carbon Price

Wednesday, November 4, 2009
Pinoy Partners give an estimate of
$22B at 3.75$/ton, $120B at 16-20$/ton, and > $300B if carbon price is 50$/ton in
the article Just how big is the economic impact of a carbon price?

They dig a bit bit deeper in the next post



A couple of interesting case studies - EDS (mostly computers) and International Paper:

EDS reported scope 2 emissions of more than 500,000 metric tons in 2007. The cost impact under carbon pricing: $2 million, $10 million, or $25 million at prices of $4/MTCO2e, $20/MTCO2e, and $50/MTCO2e, respectively. That comes out to about .3%, 1.4%, or 3.5%, respectively, of net income. Or take 3M: their scope 2 emissions in 2007 were about 1.7 million metric tons of CO2e. For them, carbon pricing on electricity could add as much as $85 million to costs, but that only represents about 2% of net income....International Paper, whose 3.2 million metric tons could cost them an extra $160 million, or almost 14% of net income...

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