Milkywire Updates Its Guidance On Setting An Internal Carbon Fee

Milkywire – the climate fund investing in valuable projects critical for the world to reach its net zero goal, announced an update on its White Paper named Guidance on Setting an Internal Carbon Fee. 

Released in 2022, the guidance is a powerful tool that explains the logic behind internal carbon fees, how they differ between industries, and how companies can set up their own fee. The paper also shares some examples of leading corporations on their carbon taxes and climate action insights. 

Relevant: How To Set An Internal Carbon Fee Event To Take Place On Dec 14th

According to Robert Höglund, author of the White Paper, the new edition: “expands on the critical need for companies to adopt a holistic approach towards emissions reduction and climate project financing. It challenges the narrative, urging companies to shift from traditional offsetting to making impactful contributions. Through detailed analysis and actionable insights, we aim to equip businesses with the knowledge to implement an internal carbon fee, driving forward the global agenda for net zero.”

An internal carbon fee is when companies voluntarily tax their emissions to take responsibility for their part in adding to the climate crisis and then use the money to support internal emission reduction activities or external climate projects to offset them. The fee can be different depending on the Scope of emissions – Scope 1 & 2 and travel emissions or those that a company controls and Scope 3 – those with shared responsibility. 

The paper guides into how an internal carbon fee can cover the full environmental and societal cost of a company’s emissions, dividing companies into categories depending on their emissions intensity, profits per ton of CO2 emitted and other factors. 

Relevant: New Report Expects Emissions Reduction Industry To Reach $1.4T By 2027

Milkywire will also host a webinar on May 7th at 4 pm CET to present the White Paper. Robert Höglund, the Climate Transformation Fund Manager, will explain more about internal carbon fees. The webinar will be joined by Alexander Farsan from Klarna and Natalie Milde from Future Energy Ventures who have implemented internal carbon fees. People can register for the event here

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