Situation:
The UBC Climate Action Plan 2030 (CAP 2030) puts the University on an accelerated path to net zero emissions for buildings and energy supply. Reducing campus operations emissions requires infrastructure change, capital investments, and innovative financial mechanisms. UBC Campus and Community Planning engaged Strategy & Decision Support to assess the feasibility of implementing an internal carbon price to better align financial decision-making criteria with UBC’s climate goals.
Our Actions:
- Convened a working group to clarify goals, assess institutional attributes, evaluate potential options for financial instruments, design a proposal, and solicit feedback from stakeholders and decision-makers
- Conducted multi-scenario lifecycle cost analyses for energy supply, equipment renewal and energy conservation projects to demonstrate how internal carbon pricing affects organizational decision-making
- Established an internal carbon pricing schedule that reflects the values and priorities of the institution, while gaining buy-in and organizational support
- Created technical guidelines that outline types of applicable business decisions, methodologies, pricing schedules, decision-making processes, and business case examples
Results:
- Development of an internal carbon pricing policy for the University to de-risk capital investment decisions from future legislative pressures and drive UBC towards zero GHG emissions
- Established an internal carbon price level of $250/tCO2e based upon carbon price escalation seen at the provincial and federal levels, ensuring that carbon costs are fully accounted for during decision-making
- The internal carbon pricing was endorsed by UBC Board of Governors for immediate piloting and implementation in energy projects, with a future expansion planned to extend its application to capital and infrastructure planning.
- With the introduction of an internal carbon price, UBC joins the City of Vancouver and Metro Vancouver in creating a local cluster of global leadership on carbon pricing