CARBON PRICE

Naturally, businesses face rising expenditures resulting from an increased cost of oil, gas, electricity and, where required, a carbon price. To lessen their vulnerability, companies can either reduce their exposure, or hedge the risk. At 2009 carbon pricing rates, the cost of carbon is almost negligible. However, at a $60 per ton carbon price, 10% of the total cash flow of listed companies will be transferred from companies with below-average carbon efficiency to those with above-average efficiency.