Internal Carbon Pricing: how leading companies use carbon price to make decisions

Large corporations such as Microsoft, Unilever, and Petrobras already adopt a mechanism little known in the Brazilian market: internal carbon pricing. It is a management tool that assigns a fictitious (or real) cost to each ton of CO₂ emitted, forcing business areas to internalize the climate impact of their decisions.

Two main models

The shadow price model is the most common: the company sets a value per tCO₂e (often between US$ 20 and US$ 150) and requires investment projects to demonstrate viability even with this embedded cost. The fee and dividend model, on the other hand, effectively charges emitting areas and redistributes resources to efficiency projects or credit purchases.

Why this matters

According to CDP, more than 2,000 companies globally already use internal carbon pricing. In Brazil, the number is still small, but it is growing with pressure from international supply chains, ESG investors, and the approaching SBCE.

How to implement

The process begins with a complete GHG inventory, followed by defining a reference price aligned with regulatory and scientific trajectories, and culminates in the integration of the carbon price into CAPEX and budgeting processes. Domani can support your company throughout this entire process, from measurement to strategy.