Carbon pricing in Hong Kong.. What will the proceeds be spent on?

Internal carbon pricing can make greenhouse gas emissions part of every operational and investment decision،

 Analysts believe that internal carbon pricing can prepare companies for changes in policies on greenhouse gas emissions.

Policymakers have three options for reducing greenhouse gas emissions, the first option is to set a certain limit on emissions that companies cannot exceed.

The second option is to impose a tax (internal pricing) on carbon, where companies pay for the amount of carbon dioxide they release into the atmosphere, and this option will push companies to invest in cleaner alternatives as long as the cost is cheaper than paying the tax, the third option is based on the development of an emissions trading plan (carbon market), and in this scenario, companies buy and sell the “right to pollute” among each other.

Internal carbon pricing is a useful tool for companies to reduce greenhouse gas emissions and guide behavioral change in pursuit of decarbonization goals, according to analysts and companies.

Companies are facing increasing pressure from investors, regulators and stakeholders to set and reach climate targets in line with global goals to stem the tide of climate change and prevent the most devastating consequences of rising temperatures around the world