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STOCKHOLM – Swedish fast fashion business H&M is to begin using an internal tool to put a price on carbon. The company claims internal carbon pricing will “help to quantify costs for the emissions from the different decisions taken by the group – for instance when designing, producing and selling a product.”

An internal price on carbon creates a theoretical cost per ton of carbon emissions. Such tools are used to better understand the potential impact of external carbon pricing on the profitability of a project or investment – and potentially reveal hidden risk.

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