Saab to roll out internal carbon price as part of 2050 roadmap
Announcement comes as recent research identifies a range of shadow prices across large companies
Saab has revealed its plan to introduce an internal carbon price as part of the next phase of its decarbonisation roadmap.
The Swedish aerospace and defence firm will introduce an “internal carbon pricing mechanism” to help it identify “any remaining financing needs” and help “close the gaps in the company’s decarbonisation journey”.
An internal carbon price is used by companies to help them consider the potential cost of carbon associated with an asset or activity, even if there is not currently a compliance market in place that imposes such a cost.
Saab said the move would allow it to “compare the costs of different reduction measures, understand the annual cost of meeting Saab’s targets, and make informed decisions regarding climate-related investments”.
The firm’s head of communications and sustainability, Viktor Wallstr
“While we will not go into the exact timeline, our intention is to publish it externally in the 2026 Sustainability statement,” he added.
German chemical firm Evonik also extolled the benefits of carbon pricing in its annual report this week.
The firm said it used an internal price when planning major projects, arguing that without it “[i]nvestment decisions may result in higher costs”.
Its current assumption is that a tonne of carbon will cost €130 under the EU Emissions Trading System by 2030, and €37 outside of Europe.
Evonik put 15 of its board members through “several hours” of training on the issue last year, it revealed.
Meanwhile, the World Business Council for Sustainable Development (WBCSD) published a report on how firms can utilise internal carbon pricing to help “guide capital allocation amid transition uncertainty”.
The CEO-backed non-profit recommended six steps for implementing a carbon price, starting with running a “carbon stress test to identify material exposure”.
Last month, an analysis of more than 220 companies by Carbon Capital Lab found that technology companies had the highest average internal carbon price ($118), compared with financial services ($90), food and beverage ($47) and consumer goods and retail ($22).
Specifically, Microsoft had a $100-per-tonne internal fee on business travel and $15 on emissions from other sources; while Etsy charged business units $100 per tonne for Scope 1 and 2 emissions and business travel, along with $15 for other Scope 3 sources.
Last year, Real Economy Progress wrote about other internal carbon prices being used by companies, including chemicals giant BASF, which plumped for €340.