How carbon pricing accelerates innovation

The document asserts that carbon pricing is a primary driver of the current tech boom in clean energy and sustainable design. It highlights how internal corporate carbon pricing and government-led markets encourage investment in low-carbon technologies, citing increased patent filings in the EU and the rapid growth of solar capacity in China. The text emphasizes that this transition extends beyond energy to transportation, materials science, and the circular economy, positioning the shift as a significant economic opportunity.

• Carbon pricing encourages companies to innovate; for instance, when the EU market price reached approximately €30 per ton, there was a 30% increase in patent filings related to carbon sequestration, energy efficiency, energy storage, and renewable energy.
• Corporations are increasingly adopting internal carbon pricing to guide investment decisions, such as Royal DSM applying a price of €50/tonne and other CEOs setting theoretical prices (e.g., €40 per ton) to evaluate the viability of assets like coal-fired factories.
• The announcement of China's plan to create the world's largest carbon market in 2017 coincided with a year-over-year doubling of global solar energy capacity, much of which occurred within China.
• The transition to a low-carbon economy is driving innovation in the transportation sector, evidenced by the shift toward lightweight materials, the use of biofuels in the US, and commitments from companies like Volvo to sell only hybrid and electric vehicles within 14 months.

APA

de Vreeze, D. (2017). How carbon pricing accelerates innovation. World Economic Forum. https://www.weforum.org/stories/nature-and-biodiversity/how-carbon-pricing-accelerates-innovation/

Chicago

de Vreeze, Dimitri. How carbon pricing accelerates innovation. World Economic Forum, 2017. https://www.weforum.org/stories/nature-and-biodiversity/how-carbon-pricing-accelerates-innovation/.

Wikipedia

{{cite press release |last1=de Vreeze |first1=Dimitri |title=How carbon pricing accelerates innovation |publisher=World Economic Forum |date=26 October 2017 |url=https://www.weforum.org/stories/nature-and-biodiversity/how-carbon-pricing-accelerates-innovation/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{devreeze2017how, author = {de Vreeze, Dimitri}, title = {{How carbon pricing accelerates innovation}}, publisher = {World Economic Forum}, year = {2017}, month = oct, url = {https://www.weforum.org/stories/nature-and-biodiversity/how-carbon-pricing-accelerates-innovation/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }