Which industries benefit from a high carbon price?

The carbon price is the currency of decarbonisation. A strong carbon price is a signal that investors, businesspeople and citizens trust their government’s commitment to combat climate change.

In the same way that trust in individual currencies supports investment, innovation and trade, trust in an economy’s carbon market helps bring about the capital, skills and long term planning that is required to help meet its decarbonisation goals.

For those businesses most adversely affected by high carbon prices, carbon may be seen as cost which must be absorbed into their margins, or if they are lucky, one to be passed onto consumers - at least in the short-term while they invest in ways to decarbonise.

But for many industries, high carbon prices are an essential signal that their businesses will be commercially viable. Some sectors gain directly as carbon prices make competing, more carbon intensive industries less competitive, while other sectors benefit indirectly through the strong signal that high carbon prices provide.

So which sectors are most likely to benefit and where do the best opportunities lie?