Enhanced Carbon Auditing (ECA) – quantifying the financial lifetime carbon costs of projects and portfolios

Uniquely, in today’s emerging arena of carbon auditing, Predict Ability Ltd (PAL) offers future-proofed carbon-pricing relevant to every industry as well as all existing and future energy sources. PAL’s Enhanced Carbon Auditing (ECA) far exceeds the reach of conventional carbon-auditing remits, by rationally quantifying the associated financial impact throughout the Life Cycle Assessment (LCA) – currently and, most notably, to 2050 and beyond.

Our carbon audit helps you ascertain your present and future lifetime carbon costs and environmental risk exposure. We use a bottom up, quantitative approach to measure your cradle to grave carbon emissions footprint and work with you to identify potential cost savings.

 

How it works

  We work with you on a life-cycle analysis to collate an inventory of direct and indirect GHG emissions and carbon embedded in products. Using our unique carbon pricing system we provide you with your carbon costs, environmental risk exposure and overall carbon intensity/risk rating.

What it does

  Identifies unseen costs, aligning your financial proposition with your lifetime carbon footprint, to optimise decision making and to save you money.

Provides transparency of ongoing risk exposure using our real-time carbon dashboard.

Why it matters

  To avoid the risk of stranded assets arising from the worst future effects of climate change.

Who it’s for

  All carbon business: Oil & Gas, Industrials, Consumer, Utilities, Transport, Financial Services, Government.

 

 

ECA Case Study: Hinkley Point C Nuclear Power Station

In this comprehensive case study we apply ECA specifically to the proposed Hinkley Point C installation, to determine its individual and time-dynamic carbon rating, directly proportionate to the loss and damage caused throughout each phase of its lifetime: construction, commissioning, operation, refits and decommissioning. We quantify and compare this with an energy-equivalent series of gas-fired power plants, and also with an alternate plan for wind turbine installations equal to the dispatchable output of Hinkley Point C. Furthermore, in graphical format, we pitch PAL’s carbon pricing methodology directly against various existing schemes including EU ETS, McDermott MCPA 2014, the US Social Cost of CO2 (USscCO2), and UK CP Floor.

hinkley-fig-1v4
Comparison of lifetime costs of Hinkley C Nuclear Power Station to Gas and Offshore Wind

The credibility of low-carbon energy and renewables technologies rests, to a significant extent, on their life-cycle carbon intensity (kg-CO2/MWh). A cradle-to-grave or life-cycle analysis of the emissions that arise from both the manufacture and operation of plant is compared to its energy output. It is important to conduct an LCA for a near-zero-emissions technology, as most of the emissions are embedded in the machinery and supply chain.

 

Request a copy of the reportRead the ECA Fact Sheet

The True Cost of Carbon

The true value of carbon and other greenhouse gas (GHG) life cycle auditing (LCA) has been hindered by the lack of reliable carbon pricing. LCA studies report their results in terms of tonnes of carbon dioxide equivalent CO2(e) whereas all other audits and accounts are expressed in monetary value. PAL is now able to bring carbon LCA into the realm of finance through its unique Enhanced Carbon Auditing (ECA) process. This is only possible because PAL has developed an independent and science based carbon pricing system, PALcarbon, that is based on the global loss and damage that emissions are causing. It has been calibrated against past damages and can be used to make scientifically based medium and long term projections of carbon losses and carbon prices.

 

Carbon Intensity Weighting

One of the features of PAL’s carbon price is carbon intensity weighting (CIW).  With a carbon price of about $11 / tonne CO2 a coal plant in the UK would pay $12.21 / tonne CO2, a CCGT plant would pay $7.09, and a nuclear plant (12 kg-CO2/MWh) would pay $0.19 instead of $11 without CIW.  Anticipating that the a plant will also have a very low carbon intensity there is a significant advantage in having an accurate life cycle analysis and in adopting CIW.  In that respect, PAL is uniquely placed to assist and advise you.

 

Predict Ability Ltd (PAL) is committed to supporting the adoption of a universal and transparent carbon price.  PALcarbon is a real-time carbon pricing and reporting system for clients that takes into account the real cost of damage caused by carbon emissions.  PALgamma is a computing risk engine for forecasting extreme weather related disaster events and identifying the impact of man-made climate change.  Predicting the Price of Carbon: How to tackle the climate change code for good is a recent publication that addresses the goals and strategies for tackling climate change.

Enhanced Carbon Auditing (ECA) – quantifying the financial lifetime carbon costs of projects and portfolios was last modified: July 19th, 2017 by admin