CFOs Warned to Adjust Businesses to Rising Cost of Carbon

European CFOs, who could see company profitability hit by the soaring cost of carbon credits, must act to protect their future viability, business leaders warned.

The warnings come as delegates congregated for the 2018 U.N.'s COP24 Climate Change conference in Poland, to consider how regulatory and commercial incentives may push businesses to reduce their carbon footprint.

In Europe, the EU Emissions Trading System effectively taxes carbon outputs by awarding each business a carbon allowance. If businesses exceed their allowance, they must buy additional carbon credits on the open market.

The cost of carbon has rocketed in recent years. According to ...