True Price Foundation 2012 The true price is the quoted price plus unpaid social and ecological external costs 6 QUOTED PRICE: 4 Ecological Costs: 1 Social Costs: 1 TRUE PRICE: 6 QUOTED PRICE: 5 Ecological Costs: 0 Social Costs: 0 TRUE PRICE: 5
TRUE PRICE Foundation True Price Foundation 2012 True pricing makes sustainability competitive 7 What would happen to relative prices?
TRUE PRICE Foundation True Price Foundation 2012 A sustainable economy is smart and circular Challenge – Estimates of ecological external costs lie mostly between 6%-50% of global GDP Producers must use resources more efficiently Taxation can be done more efficiently Consumers need to shift from having goods to having access to services We should be smarter in addressing poverty 8 What needs to be done to achieve true pricing?
TRUE PRICE Foundation True Price Foundation 2012 Determining true prices is possible 9 6,7% Ecological costs in total price Puma published first estimate of true price Source: Puma EP&L 2010 (2012)
TRUE PRICE Foundation True Price Foundation 2012