Climate change worsens air pollution, posing major health risks, yet current social cost of carbon (SCC) models exclude these damages. This Review outlines a framework for including air quality impacts in the SCC and reviews existing evidence to inform near-term modelling efforts.
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Nature
Incorporating air quality health impacts into the social cost of carbon | Nature Climate Change
Abatify Summary
Nature & Climate Perspective
**Quantifying localized health co-benefits within the social cost of carbon highlights the immediate ecological and atmospheric advantages of transitioning away from combustion-based energy. **
- Reduced atmospheric loading of PM2.5 and SO2 directly prevents soil acidification and eutrophication, protecting regional biodiversity and fragile terrestrial ecosystems.
- Higher carbon valuations incentivize rapid reforestation and Blue Carbon preservation, boosting natural carbon sequestration capacity in high-pollution corridors.
- Long-term environmental stability is enhanced as cleaner air quality restores natural vegetative photosynthetic efficiency, creating a positive feedback loop for climate resilience.
Market & Policy Outlook
**Incorporating localized air quality impacts into the social cost of carbon fundamentally reshapes carbon pricing and aligns project assessment directly with the ICVCM's Core Carbon Principles on sustainable development benefits. **
- Regulatory agencies will face pressure to adjust carbon pricing upward, raising the financial bar for corporate Scope 3 compliance and accelerating transitioning strategies.
- The voluntary carbon market will see a shift in liquidity toward high-integrity projects that demonstrably improve local air quality, matching ICVCM CCP mandates for environmental safeguards.
- Corporate compliance frameworks like SBTi will increasingly penalize fossil-fuel reliance as health-inclusive SCC models raise the shadow price of carbon in internal decision-making.
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