Greenhouse gas emissions abatement cost curves
A Group Greenhouse Gas Standard has been developed for implementation at each business by mid 2005. Supporting guidance documents have been issued. An important component of the standard is the completion by the businesses of GHG emissions abatement cost curves from which specific improvement projects can then be identified and ranked according to the amount of carbon saved.
This assists business to make informed decisions about which projects to implement.
An abatement cost curve utilises the financial impact of projects as represented by the Net Present Value, and impact on GHG emissions over the life of the project, to evaluate the cost or financial saving per tonne of GHG emissions abated. The financial analysis includes the operating cost impact from energy savings. The projects are ranked from greatest financial reward to greatest cost per tonne allowing an assessment of the potential abatement available from cost neutral projects. The impact of a cost on carbon to the potential abatement can also be assessed.
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