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MitigationCostCurves Ankara,6September2016 Abatementcost • Inthecontextofclimatechange,abatement costisthecostofreducingGHGemissions. • Themarginalabatementcost (MAC),in general,measuresthecostofreducingone moreunitofGHGemissions(1tonne of CO2eq). Abatementcosts • Marginalabatementcostscanbe: – Negative(whenlowcarbonoptionsarecheaper thantheBAUoptions), – Positive(whenlowcarbonoptionsaremore expensivethanBAUoptions) • MACs oftenrisesteeplyasmoreGHGs are reduced. Marginalabatementcostcurve • MarginalabatementcostsforGHGmitigation aretypicallyusedonamarginalabatement costcurveorMACcurve,whichshowsthe marginalcostofadditionalreductionsinGHG emissions. Source:https://www.researchgate.net/figure/277976875_fig1_Figure-1-Ameasure-explicit-marginal-abatement-cost-curve Otherexamples • McKinsey&Company- economywideanalysesonGHGemissions reductionsfortheUnitedStates • ICFInternational- aCaliforniaspecificcurvefollowingAB-32 legislation • TheWuppertalInstituteforClimate,EnvironmentandEnergymarginalabatementcostcurvesforGermany • USEPA- MACcurvefornonCO2emissionssuchasmethane,N2O, andHFCs. • Enerdata andLEPII-CNRS(France)- MACcurveswiththePOLES modelforthe6KyotoProtocolgases. • WorldBank- 2013low-carbonenergydevelopmentplanforNigeria UsersofMACcurves • Carbontraders,powercompanies,economists,policymakers • MACcurvesshouldnotbeusedasabatementsupply curvestodecidewhichmeasurestoimplementin ordertoachieveagivenemission-reductiontarget. – Optionstheylistwouldtakedecadestoimplement,andit maybeoptimaltoimplementexpensivebuthigh-potential measuresbeforeintroducingcheapermeasures. CaveatsontheuseofMACcurves • Embracecomplexity • Payattentiontotheassumptionsbehinda MACcurve,alongsidetheMACcurve • Alwayslookbeyondestimatedtechnologycost • Acceptuncertainty • Understandpathdependencies ESMAPMACTool • TheMarginalAbatementCostTool(MACTool)isanExcel-based softwaretoolforcalculatingmarginalabatementcostsofclimate changemitigationoptionsandplottingthemagainstthe correspondingGHGemissionreductionresults. • ThegraphicaluserinterfaceofMACTool guidesusersthroughthe dataentryprocess,simplifyingatypicallylaboriousprocessinvolved inbuildingaMarginalAbatementCost(MAC)curve. • See:https://esmap.org/MACTool Letsworkthroughanexample…
