Climate Change and Emissions Trading
Your Challenges
Climate change has emerged as one of the most important political, social and business issues of our time. Addressing these issues raises substantial strategic, operational and financial challenges and opportunities.
- How do I develop a carbon strategy?
- How can I reduce our direct or indirect carbon emissions?
- What should my approach to carbon trading be?
- How should I manage a Clean Development Mechanism project?
- How does climate change impact valuations and capital-raising activities?
- What are its accounting implications?
Meeting Your Needs
PwC helps clients analyse markets and policy developments and integrate climate-change challenges and opportunities into their corporate strategy and plans. We advise clients on their corporate, investment and emissions trading strategy, as well as on investor relations and wider stakeholder engagement. We offer knowledge in renewable energy and retail carbon, as well as compliance markets and policy. We help with scenario planning, market analysis and commercial, regulatory and environmental strategy development.
Carbon finance, transactions, mergers and acquisitions
PwC works with both buyers and sellers of carbon credits in all the main carbon markets, offering a full range of transaction services, including financial advice, tax structuring, auctions and carbon due diligence. The cost of carbon will have a measurable impact on business transactions, ranging from capital allocation decisions to merger and acquisition strategy. Understanding how a target's business is affected by climate change should be an integral part of an acquirer's risk management strategy and the due diligence process. PwC can assist the acquirer in the evaluation of the impact of a target's respective strategy, not only on financial results, but also on reputation, branding and stakeholder interest.
Clean Development Mechanism projects
It is likely that many countries will depend on emission reductions generated by projects developed under the Clean Development Mechanism ("CDM") scheme to meet their climate change and emission targets. PwC is a leading adviser on CDM project development covering all stages of the project cycle, from origination to sale.
Carbon risk management and health check
We help companies to systematically identify and evaluate the risks presented by climate change and emissions trading, and to develop effective risk management measures in the context of an often fluid and uncertain external environment. Our services range from a PwC carbon health check to more detailed reviews. The health check consists of a high-level review of 12 focus areas (regulatory, accounting, tax, legal, monitoring and so on).
Greenhouse Gas ("GHG") data management, reporting, and verification
The design and implementation of robust data management systems and quality control over reported information are key challenges for organisations participating in emissions trading schemes or voluntary initiatives to address carbon emissions. We help our clients to establish greenhouse gas inventories to meet emerging international best practice, advise them on the design and implementation of data gathering and reporting systems, and test the adequacy of their controls over the data. In addition, we provide external assurance of the accuracy and reliability of greenhouse gas data, both within international emissions trading regimes and within the context of sustainability reporting.
Public policy and delivery
Our global network of firms provides evidence-based policy advice to government and public-sector clients on climate change. We advise public-sector clients across national, regional and local government, and international financial institutions such as the World Bank. Our services include advising on the design of market structures for emissions trading, helping organisations address their own carbon footprint and assessing the socio-economic impact of the physical effects of climate change.
