Indian multinational company Infosys Monday announced its internal carbon price at $10.5 per ton of Carbon Dioxide equivalent (CO2e) emission. This price, which will be valid for two years from the date of announcement, is essentially the cost of decarbonising the emissions of CO2e. A press release issued by the company said that this price has been estimated by weighing the average of the prices of carbon under various categories.
“The carbon price announced today is a weighted average of the prices of carbon under the energy efficiency, renewable energy, and emission offset levers. The price of carbon under each lever was estimated based on the company’s past and ongoing investments in the area,” the release said.
“Infosys derived its internal carbon price based on its program to completely decarbonize under the carbon neutral commitment,” it said.
The idea behind deciding an internal carbon price is essentially that the entity polluting should pay for the damage done to the environment. As the money comes to Infosys from the polluting entities, the company can use these funds for the emission reduction programs.
Infosys is a member of Carbon Pricing Leadership Coalition, an organisation that is working towards increasing awareness around the idea of carbon pricing.