3. Incorporate carbon criteria into investment planning
Investment decisions regarding utilities are traditionally based on simple payback period (SRP). Incorporating the carbon parameter adds a second criterion: the cost per metric ton of CO
2
avoided (€/t CO
2
e):
Carbon cost (€/t CO
2
e) = Investment (€) / Cumulative GHG reduction over the lifespan (t CO
2
e)
This ratio makes it possible to compare different types of initiatives and relate them to the market price of carbon (European ETS, domestic carbon tax).
You do not have access to this resource.
Exclusive to subscribers. 97% yet to be discovered!
Already subscribed?
Log in!
Ongoing reading
Incorporate carbon criteria into investment planning