PAL estimates that about $295 million annually is payable to London from 2018. If the law of England permits, we believe Mayor Khan could, like Mayor de Blasio of New York has done, bring a suit against five of the largest oil companies (‘The 5 Big Oil’: BP, Chevron, ConocoPhillips, ExxonMobil, Royal Dutch Shell) to compensate the city for past climate-related losses and to provide for future infrastructure to enable London to adapt to sea level rise.
As part of New York City’s programme to deal with climate change, Mayor de Blasio has overseen a wide-scale divestment of fossil fuel investments connected with the city’s pension funds etc. In 2017, the Mayor added impetus by bringing forward a suit against five of the largest oil companies (‘The 5 Big Oil’: BP, Chevron, ConocoPhillips, ExxonMobil, Shell) to compensate the city and its boroughs for past climate-related losses and to provide for future infrastructure to enable New York City to adapt to sea level rise. This is exactly the sort of situation in which PAL is so well placed to advise.
$23-billion Carbon Loophole at Drax: CO2 emissions disclosure requirements legitimately conceal the true cost of damage to the planet
This new case study shows how PAL’s Carbon Value at Risk (VaR) metric is used to determine the extent of carbon liability risk – the potential cost of damage attributable to carbon emission related anthropogenic (manmade) climate change. For users of biomass as a fuel source such as Drax power station, it highlights a potential $23bn ‘black hole’ between the expected loss and damage caused by carbon dioxide emissions over the next 25 years ($33bn) and equivalent loss and damage where biomass emissions are excluded ($10bn).
This report provides a lens through which the long-term financial impacts of climate change for a portfolio of companies may be measured. Whilst significant change is underway as sectors prepare to transition to a lower-carbon economy, a long-term quantitative risk approach is required to effectively measure the preparedness of individual companies and the rate-of-transition of sectors as a whole.
Predicting the Price of Carbon Supplement 1: Hinkley Point C Nuclear Power Station Enhanced Carbon Audit Case Study
Uniquely, in today’s emerging arena of carbon auditing, Predict Ability Ltd (PAL) offers future-proofed carbon-pricing relevant to every industry as well as all existing and future energy sources. PAL’s new development is called ‘Enhanced Carbon Auditing’ (ECA) and far exceeds the reach of conventional carbon-auditing remits, by quantifying the associated financial impact throughout the Life Cycle Assessment (LCA) – currently and, most notably, to 2050 and beyond.
Our book Predicting the Price of Carbon by Richard H. Clarke demonstrates that the cost of carbon can be scientifically determined and 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.