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A Novel Approach to Carbon Pricing

Dan Kammen, founding director of the Renewable and Appropriate Energy Laboratory (RAEL) at UC Berkeley, recently Dan Kammenattended the Seventh Clean Energy Ministerial in San Francisco.  In a June 29, 2016 video interview hosted by Greenbiz, Kammen explains a novel approach to carbon pricing:

Make carbon accounting a business requirement.

Click here to check out the video interview!

During 2010-2011, Kammen was the World Bank Group's Chief Technical Specialist for Renewable Energy and Energy Efficiency.

As part of the World Bank's strategy for long-term, sustainable development, Kammen introduced carbon accounting as a business requirement.  He says it is the only way to create a common language to compare projects' long-term costs.  As a business requiment, bids for projects and contracts include not only the direct cost of materials, but also calculate the carbon costs of direct-cost materials and processes.

Kammen notes that when carbons are taken into account, often the lowest direct-cost bid has the highest overall cost.  By making carbon accounting a business requirement, the cost-effectiveness of using renewable energy sources becomes evident.