How Much Extra Would You Pay to Save the Planet?
Green premiums will raise prices in the short-term, but they’re worth paying for now.
Looking expensive.
Source: Bloomberg
How much extra would you pay for a product that’s less harmful for the planet? Porsche AG wants future customers to pay a 10%-15% premium for electric versions of its Cayenne and Macan sports utility vehicles. European steelmakers forecast a roughly 20% boost to prices from low-carbon steel.
It’s a vital question for business leaders and investors to contemplate, as companies will have to spend trillions of dollars over the next couple of decades to eradicate carbon emissions. A so-called green premium for goods and services can help make those massive investments financially viable while giving companies an incentive to decarbonize sooner.