Are you prepared to manage carbon as an asset?
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Public debate over climate change increases in the US on a daily basis. The pressure on corporations to go green is relentless. PwC recently compiled research on the impact of potential regulations on carbon emissions and carbon trading. The paper addresses ways companies can prepare for GhG regulations by assessing their carbon footprint and the potential accounting/disclosure implications of participating in a cap-and-trade program.
The paper also provides insight to the tax implications of a cap-and-trade program and explores the possibility of a carbon tax as an alternative the proposed cap-and-trade programs. Although a climate change bill was defeated in the US Senate in June 2008, we continue to believe it is inevitable that national legislation on greenhouse gas (GhG) emissions will be put into effect after the US presidential elections. This could create an enormous shift in the marketplace, which will affect many aspects of the economy. Companies with the greatest exposure to change will be those with the largest carbon footprints, in particular the utilities, energy, and industrial products sectors.