Internal Carbon Price

An internal carbon price is a value a company assigns to its own greenhouse-gas emissions to steer investment and operating decisions before any external carbon cost applies. It takes two main forms: a shadow price applied in financial appraisal to test a project against future carbon costs, and an internal fee charged to business units that funds abatement. For shipowners, an internal carbon price helps weigh newbuild fuel choices and retrofit options against expected EU ETS, FuelEU Maritime, and IMO mid-term-measure costs. The price is set by the company, not a regulator, so it functions as a planning tool rather than a market obligation.