Big Oil anticipates 10-fold surge in carbon cost

International oil producers are girding for carbon emission costs that may surge to almost 10 times the current prices in Europe, the world’s largest greenhouse gas market, as governments around the world step up efforts to curb climate change.

Exxon Mobil Corp., the biggest energy company by market value, is basing plans for future capital investments on the assumption that it will have to pay $60 a metric ton for carbon emissions.

That’s the most among 11 U.S. and European companies that provided figures in a report released Thursday by CDP, a nonprofit that compiles environmental performance data for investors. Royal Dutch Shell Plc and BP Plc are planning on $40, and Total SA anticipates a carbon cost of $34, according to the New York-based group formerly known as the Carbon Disclosure Project.

via Fuel Fix » Big Oil anticipates 10-fold surge in carbon cost.

Categories: Electricity, Energy