The Greenhouse gas Emission Control Strategies GECS project

1. The Greenhouse gas Emission Control Strategies (GECS) project Work Package 2 WP Multi-gas emission and carbon sinks projections, Marginal Abatement Cost functions modelling Cor Graveland, Lex Bouwman and Bert de Vries

2. Contents Introduction Baseline scenario Emission reduction measures (ERM) Cost assumptions Development of MAC curves

9. Cost calculations Costs considered: private costs direct costs involved net costs Net costs, therefor direct benefits or savings are part of it as well, like energy savings for example Use discount rate of 10 Percent Use 1995 U$ or 1999 EURO

12. Costing method (I) 1. Reference emission scenario for view years (2010 and 2030) from IMAGE; 2. Emission abatement measures 3. Costing methodology comprises: (i) Relevant model parameters for each option, i.e. (i) (Investments and O&M) (ii) The operation lifetime of an abatement option; (iii) Discount rate; and, (iv) Annual quantity of pollutant abated

13. Costing method (II) 4. Annualize the present value of the total cost stream over operating life: COSTsTOT = (a * COSTsINV + COSTsO&M) With: COSTsTOT=yearly total costs COSTsINV =yearly investment costs COSTsO&M)=yearly operation and maintenance costs The annuity factor: a = Annuity factor: r/(1-(1+r)-n) r = discount rate (in % per year) n = operating lifetime (in years)

14. Costing method (III)

15. MAC construction, preliminary results Examples: CH4 - emissions from landfills Emission Reduction measures (ERMs) Carbon - sink C-sequestration via Forestation

16. Example: Landfill

22. Conclusions Emission scenario, ... Emission projection ERM, Options Abatement costs