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Conclusion: a six-point plan for building the New Carbon Economy The intent in this paper has been to spotlight early signs of an emergent future. Clearly, there is much work still to be done to get us to an economy that, in aggregate, sequesters more carbon than it emits. We see six crucial areas of activity to focus on in order to create the necessary enabling environment for the New Carbon Economy to flourish: 1. Evolving a new data and reporting infrastructure Over the past 20 years, organisations and initiatives like CDP and the GHG Protocol have catalysed a transparency revolution around emissions. Now we need to do the same for emissions avoidance and carbon removal. The key methodological issues to be resolved are to do with the permanence of some removal techniques and the identification of credible “business as usual” scenarios against which to benchmark when assessing avoided emissions. 2. Closing the gap between economic and environmental policy Many governments pay lip service to “clean growth”, but if they are serious about it, Carbon Productivity needs to become a key performance indicator for economic policy-makers, much as labour productivity is used today. An obvious corollary of this is to use policy to fix the market’s failure to properly price CO2 emissions. In addition, next-generation carbon pricing mechanisms will need to evolve to build in incentives for carbon removal. 3. Enabling investors to see the opportunity side of carbon Rather than asking of plans to reverse global warming, “what will it cost?”, we must learn to ask “what will the return on investment be?” Project Drawdown’s analysis of 80 solutions that would together reduce atmospheric CO2 by more than 1000 gigatons estimates that the lifetime savings of those solutions would outweigh costs by almost $45 trillion. The challenge now is to design business models and investment vehicles that allow individual companies and investors to capture the value associated with implementing these solutions. 26PDF Image | Our Carbon Future White Paper
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