There is, of course, a problem with that attitude. Unless business goes green then there is no chance of net-zero carbon targets being met. But business won’t go green until it is a bottom line, profit and loss issue. And it will not become a bottom-line issue until climate change is forced onto a businesses’ balance sheet and into its profit and loss account.
The Corporate Accountability Network, which I direct, has come up with the only proposal there currently is to make this happen. What we propose is that the full potential cost of a corporation meeting its net-zero carbon goals is reflected as an up-front provision for those costs within its accounting system, and so in its financial reporting.
It’s not just blithering stupidity it’s also bollocks.
The answer is a carbon tax. Which is one – one – of the reasons all economists recommend a carbon tax.
So, the carbon tax is a Pigou Tax. It corrects market prices to reflect third party osts. That is, third party costs are now reflected in market prices.
ac counts are drawn up at market prices. A carbon tax means all company accounts now include climate change.
Done, dusted and finished. Which is why all economists recommend a carbon tax of course. That’s why Stern, Nordhaus, Quiggin, The IPCC, Tol and everyone else recommend a carbon tax. So that the costs of carbon are now in market prices. Are in everyone’s incentives, accounts and decision making processes.
The problem is already solved. Meaning both that the Corporate Accountability Network isn’t the first group to suggest a solution and also that we don;t need the one Snippa is proposing.