Temasek Holdings, the $281bn sovereign wealth fund of Singapore, has set an internal carbon price of $42 per tonne as part of a push to incorporate climate and sustainability factors into investment decisions.
According to the fund, the new carbon price will be considered by its Investment Committee - together with company-level ESG data - to “guide decision-making in line with broader climate targets and model the likely future impact of carbon pricing on the investments we make”.
The newly-adopted carbon price is derived from a 1.65°C climate model issued by the International Energy Agency (IEA) in 2020, which requires the global economy to decarbonise by 2070. Recent models issued by the energy watchdog have been markedly more ambitious, targeting a temperature rise of only 1.5°C and a Net Zero deadline of 2050.
Temasek officials told RI that while they considered the carbon price to be a “bold starting point” for the fund, they acknowl…