For companies with net-zero targets, 2030 is a critical milestone for decarbonizing operations and product portfolios. For those companies that haven’t made such commitments, regulations in many regions will, regardless, soon force action to reduce their carbon footprint.
Carbon is expected to become a significant cost driver at a global level over the next decade as companies comply with incentives and regulations that are currently (or soon to be) in force in many jurisdictions. Major examples include carbon taxes, such as the Emissions Trading Systems (ETS) and Europe’s Carbon Border Adjustment Mechanism (CBAM). While recent pushback has created uncertainty around the timing and severity of such regulations, a good carbon strategy will still minimize the downside risk of regulation while maximizing the upside potential of finding value in carbon abatement. Taking action now to reduce carbon intensity across a product portfolio could, therefore, deliver increased business resilience beyond environmental benefits by reducing exposure to increased costs and future tax liabilities—if done thoughtfully.
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