G4.6 Social cost of carbon
Develop and adopt policies that require the use of a “social cost of carbon measure” in zoning, development, construction, and transportation decisions.
The Social Cost of Greenhouse Gases and State Policy: A Frequently Asked Questions Guide gives an overview of the issues. (Though it says “Several states and municipalities have used the SCC in the context of renewable energy decisionmaking” and discusses a number of state programs including Washington’s, in which agencies are required to use it in evaluating energy investments, it doesn’t identify the municipalities…)
“Embedding a carbon price into business strategy”, from CDP (formerly the Carbon Disclosure Project), reports on 1,200 corporations incorporating a shadow carbon price in their long-term planning as a way of managing their risk exposure to future policies that place a price on carbon and reallocating capital to deliver higher returns in a low-carbon economy.
A number of states require the use of a shadow carbon price in utility planning, including Washington. (The 100% Clean Electricity bill, adopted in 2019, requires the use of a shadow carbon price of about $75/tonne in selecting conservation policies, programs, and targets; and in resource planning.)
King County uses a shadow carbon price in capital facilities planning, major vehicle and fuel decisions, cost benefit analysis of climate change actions, and other operating decisions.