A cost curve for greenhouse gas reduction

A study of the relative economics of different approaches to reducing greenhouse gas emissions offers surprising insights for policy makers and business leaders.
For starters, in a 25-year perspective, power generation and manufacturing industry offer less than half of the potential for reducing emissions.
Almost a quarter of possible emission reductions would result from measures (such as better insulation in buildings) that carry no net life cycle cost—in effect, they come free of charge.
The study finds that a substantial share of the overall opportunities, including a large potential to reduce emissions by protecting and replanting forests, lies in developing economies.

Exhibit 1: A simplified global cost curve illustrates the estimated size and cost of feasible approaches to abatement by 2030.
Exhibit 2: Three abatement scenarios would require reductions beyond business as usual.
Exhibit 3: Power and manufacturing industry account for less than half of the overall potential to reduce emissions at a cost of 40 euros a ton or less.
Exhibit 4: Developing economies may account for more than half of the total abatement potential at a cost less than or equal to 40 euros a ton.
Exhibit 5: Five abatement measures hold the potential to reduce the power sector's total emissions to 7.2 gigatons by 2030, from 9.4 in 2002.

In the current environment, costs are rising as price sensitivity increases. Six tactics can help companies get pricing right.

Search full site

As a free member you can also:

First Name* Last Name* Company* Job Title*

We will not share your e-mail.
See details.

E-mail* Password* Confirm Password*

*Required