Many Canadian companies, especially in the energy sector, are
using a shadow carbon price in their current decision-making
processes. A shadow carbon price is the expected future price of
carbon, reflecting the expected market price or regulatory cost,
or the cost of reducing or offsetting carbon emissions.
Sustainable Prosperity surveyed ten companies in the energy
sector, and found that all ten are using a shadow carbon price;
seven formally, three informally. The shadow carbon price is
informing project evaluation, and strategic and business
planning. Companies are using it to mitigate risk, such as
market access, and to realize opportunities, including reducing
carbon emissions.