Carbon pricing going global
Carbon pricing is growing, whether with national schemes or companies internal pricing, as ESG issues go mainstream. It is set to imminently expand to some of the world's largest carbon emitters, China and the Transport (Shipping, Airlines) sector. The COVID recession may delay but is unlikely to derail this trend. Carbon scheme revenues currently equate to c1% of global corporate earnings but could ultimately rise to 12x that, focused on three main sectors. It remains a long-term earnings headwind, and the direction of travel is clear. It pays to be structurally