Predicting the Price of Carbon
How to Crack the Climate Change Code for Good
Without a global price for carbon there can be no sustainable solution to the already unstoppable impact of climate change. It’s the one key factor that virtually all leading environmentalists, international bankers, energy giants, scientific experts and policy makers worldwide agree is both vital and increasingly urgent. Agreement on how to establish that price has proved elusive and contentious.
In his easy yet elegant style, Richard Clarke demonstrates that the cost of carbon can be scientifically determined. He explains how to analyse and isolate the damage attributable to man-made climate change and thus how to put a predictable, fair and effective price on it – past, present and future.
Uniquely, Richard then develops the carbon price mechanism to create a practical, future-proofed global solution, without which developing countries will be much impoverished. He argues that the World Bank/IMF/UN should be the agencies for levying the carbon price and collecting the resultant revenue. This would then be fairly distributed with four realistic AIMS, whereby allocations are directed to Adaptation (e.g. flood protection), Insurance (ensuring viability), Mitigation (e.g. solar panels, wind turbines and carbon capture), and to Social dividend (tax impact offsets).
This scientifically robust, evidence-based work makes a fascinating and compelling case. Precise, detailed and comprehensively illustrated, it is richly referenced throughout, an invaluable resource for climate professionals, insurers, investors, risk modellers, energy conglomerates and government advisors.
‘To avoid the worst effects of climate change the world needs to rapidly shift from fossil fuels to renewable energy. Clarke’s detailed and thoughtful book examines the practicalities, effectiveness and social justice of placing a price on our carbon pollution. Clarke’s insight is that economic policies and the costing of our pollution is the only way to save the planet.’
Prof. Mark Maslin FRGS author Climate Change: A Very Short Introduction (OUP, 2014)
Predict Ability Ltd (PAL) is committed to supporting the adoption of a universal and transparent carbon price. PALcarbon is a real-time carbon pricing and reporting system for clients that takes into account the real cost of damage caused by carbon emissions. PALgamma is a computing risk engine for forecasting extreme weather related disaster events and identifying the impact of man-made climate change. Predicting the Price of Carbon: How to tackle the climate change code for good is a recent publication that addresses the goals and strategies for tackling climate change.
Author: Edward Coe
Edward Coe is Managing Director and co-founder of PAL. He has extensive experience of systems development and implementation for advanced derivative trading systems utilising a broad range of technologies supporting in house, bespoke and third party software. Edward developed the software behind PAL Carbon.