The decision to introduce a high SCC is important, especially as you say when it comes to government procurement. I'm sceptical as to its value as a signalling device to the rest of the economy. There is no legislation in place that ensures the SCC provides certainty to investors. Any investor would take a probabilistic approach to the future value of the SCC and see that there is a very real risk that it could come crashing down from November 2024. The Trump administration SCC estimate was a meagre $1-$7 per ton of CO₂ due to the high discount factor used in the calculation. What's to stop the SCC being revised down sharply under a different, more climate sceptic administration?
Great article / great news Anna. This new $190 benchmark anchors the economics for change. Really powerful. Helps us entrepreneurs ground our services in fact and value of impact.
The decision to introduce a high SCC is important, especially as you say when it comes to government procurement. I'm sceptical as to its value as a signalling device to the rest of the economy. There is no legislation in place that ensures the SCC provides certainty to investors. Any investor would take a probabilistic approach to the future value of the SCC and see that there is a very real risk that it could come crashing down from November 2024. The Trump administration SCC estimate was a meagre $1-$7 per ton of CO₂ due to the high discount factor used in the calculation. What's to stop the SCC being revised down sharply under a different, more climate sceptic administration?
Great article / great news Anna. This new $190 benchmark anchors the economics for change. Really powerful. Helps us entrepreneurs ground our services in fact and value of impact.