an instrument that captures the external costs of greenhouse gas (GHG) emissions—the costs of emissions that the public pays for, such as damage to crops, health care costs from heat waves and droughts, and loss of property from flooding and sea level rise—and ties them to their sources through a price, usually in the form of a price on the carbon dioxide (CO2) emitted.
synonym: carbon markets
see also: carbon footprint
note: A carbon price can affect the cost of copper production, but the cupper industry is relatively less exposed to carbon pricing compared to other commodities where the cost of carbon represents a much higher percentage of the metal price. Carbon pricing favours copper demand, since it improves the economic return for the investment into the energy transition.