BENEFITS TO BUSINESSES
An independent analysis conducted for the Department of Energy Resources found that under a carbon fee and rebate system in Massachusetts, Gross State Product would rise by over $600M and over 12,000 jobs would be created once the price reaches $40 per ton.
- Ensures businesses and individuals will have the freedom to choose if and how they reduce carbon consumption.
- Increases the price gradually, allowing markets and industries to have time to adjust and become leaders through innovation.
- Provides clean energy companies, which already employ more than 100,000 in the state, more confidence in the future market for their products and workforce.
- Reducing carbon pollution creates a healthier community, which means a healthier economy. A carbon price would mean fewer cases of respiratory ailments like asthma and bronchitis, reductions in heart disease and cancer, and fewer sick days from work and school.
- Provides businesses with competitive advantage by being first-movers in efficiency and optimization.
WHY IT WORKS
- In an efficient market, the public costs of our economic activities are priced into the cost of doing business. Currently, the prices of electricity and carbon-based fuels reflect none of the costs associated with health or climate impacts. A price on carbon would incentivize innovative, cost-effective ways to reduce carbon pollution.
- Carbon pricing is the only mechanism that creates a fair, economy-wide approach to emissions reduction beyond the electricity sector, leveling the playing field for all industries.
- Massachusetts imports all of its natural gas and oil, sending billions of dollars out of state each year. Reducing our fossil fuel consumption means more money here at home for consumers and businesses to recycle back into the local economy.
More than 1,000 companies and investors expressed support for a price on carbon ahead of the UN Secretary-General’s Climate Summit.
BUSINESSES ARE ALREADY DOING IT
Carbon pricing is already becoming deeply embedded in business strategy. A growing number of companies – including Microsoft, Disney, and Ben & Jerry’s – are adopting internal carbon pricing to better asses the financial benefits and risks of investing in new projects. Businesses understand that their future stock valuations are at risk due to the effects of climate change.
Adoption of internal carbon prices by the private sector demonstrates the wide belief among business leaders that carbon emissions should, and will, be priced by the federal and/or state governments. This trend will grow as businesses increasingly respond to the growing investor sentiment that carbon pollution poses significant financial risks.