In brief
Bridgewater Associates argues that carbon pricing, which covers around 30% of global emissions and is led by the EU and China, is already affecting corporate costs and investment flows. Carbon border mechanisms are speeding up its adoption.
Its central point is that expectation alone shifts investment. Companies are changing course before schemes are fully enacted, because a carbon price alters the relative economics of technology choices, such as, for example, electric arc furnaces against blast furnaces for steel.
