◼︎Internal Carbon Pricing (ICP) is considered one of the effective tools to promote a company's low-carbon transition. Many companies have adopted ICP methods to quantify their overall carbon emissions and incorporate them into financial cost estimates, thereby driving the company towards low-carbon development.
◼︎There are two main forms of internal carbon pricing:
Shadow Price：When selecting capital investments and estimating the cost over the
entire investment lifecycle, the shadow price internalizes the carbon cost. It is a
theoretical value assigned to the investment target but not actually charged. It
typically corresponds to the environmental and financial costs over the project or
equipment's lifecycle.
Internal Fee：This is a voluntarily imposed price per ton of carbon emissions within
the company. The aim is to reduce emissions in the short term and, in the long term,
encourage innovation in low-carbon and low-energy technologies by redesigning
incentive structures.
Internal Carbon Pricing Guidance Process
