It can be added to investment appraisals as a shadow price or charged to business units as an actual internal fee. TSRS 2 requires disclosure of whether and how an internal carbon price is applied.
Source: TSRS 2, CDP
Related terms
TSRS 2The standard setting out the disclosure requirements for climate-related risks and opportunities.Carbon Border Adjustment Mechanism (CBAM)An EU regulation that puts a price on the embedded carbon emissions in the production of certain goods imported into the European Union.Transition planA strategic plan setting out an entity's targets, actions, resources and timetable for transitioning to a low-carbon economy.Carbon creditA tradable certificate representing one tonne of carbon dioxide equivalent of greenhouse gas reduction or removal achieved by a verified project.Carbon footprintThe total greenhouse gas emissions caused by an organisation, product or activity, expressed in carbon dioxide equivalent (tCO₂e).Circular economyAn economic model aimed at keeping the value of products and materials for as long as possible by reducing waste and by reusing, repairing and recycling.
Last updated: November 8, 2026 · This definition is for general information only.