Compare the cost of offsetting emissions against reducing them at source.
Comparing abatement cost per tonne with the offset price ranks options on a common basis. Measures cheaper than offsets should always be done first, since they are permanent. Offset prices are expected to rise as cheap projects are exhausted, which improves the case for reduction measures with long lives.
Carbon Offset Cost
Abatement cost = capital cost ÷ lifetime tonnes avoided; compare with the offset price
Abatement cost = capital cost ÷ lifetime tonnes avoided; compare with the offset price Comparing abatement cost per tonne with the offset price ranks options on a common basis. Measures cheaper than offsets should always be done first, since they are permanent.
Offset prices are expected to rise as cheap projects are exhausted, which improves the case for reduction measures with long lives.
This calculator takes 5 inputs: Emissions to address, Offset price per tonne, Capital cost of a reduction measure, Emissions avoided by that measure, Life of the reduction measure. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.