Why investors must assess the risks as carbon prices become commonplace in 2018

Sectors to watch

As carbon prices become more ubiquitous, businesses that fail to act risk being left with assets that will simply be unaffordable to extract or sell, writes Tarek Soliman, senior analyst - investor research at CDP.

Despite the recent US decision to pull out of the Paris Agreement, the next 12 months is set to see the rapid rollout and reform of carbon pricing schemes - from California to China - as lawmakers across the globe seek out ways to reduce greenhouse gas emissions. There are already 40 established carbon markets - the largest being the EU's scheme - and countries such as Canada and South Africa recently announced plans to introduce new or expanded prices on carbon in 2018. But the emissions trading scheme that is likely to prove the most disruptive is China's. Its government plans to ro...