The use of a shadow carbon price by Coliban Water is an example of explicitly considering future costs of carbon in decision-making.
It is expected that the approach will drive behavioural change in the business through the consideration of carbon and climate change at the beginning of the project lifecycle. In addition, the business will likely avoid ‘lock-in’ of high emitting technologies.
This case study is from Towards Resilience: Climate change and the urban water industry in Australia and New Zealand.