Financial modelling of carbon reduction investment strategies 'marginal abatement cost MAC curves'

Presentation


Blake, Martin, Strong, David and Lydiard-Wilson, Jonathan. 2011. "Financial modelling of carbon reduction investment strategies 'marginal abatement cost MAC curves'." How to reduce costs, business risks, energy usage and carbon emission while maximising investment returns (2011). London, England 11 May 2011 London, United Kingdom.
Paper/Presentation Title

Financial modelling of carbon reduction investment strategies 'marginal abatement cost MAC curves'

Presentation TypePresentation
AuthorsBlake, Martin (Author), Strong, David (Author) and Lydiard-Wilson, Jonathan (Author)
Journal or Proceedings TitleHow to Reduce Costs, Business Risk, Energy Usage and Carbon Emission While Maximising Investment Returns
Number of Pages2
Year2011
Place of PublicationLondon, United Kingdom
Web Address (URL) of Paperhttp://www.bwbllp.com/Files/Seminars/MACCEventNAdraftdocx.pdf
Conference/EventHow to reduce costs, business risks, energy usage and carbon emission while maximising investment returns (2011)
Event Details
How to reduce costs, business risks, energy usage and carbon emission while maximising investment returns (2011)
Event Date
11 May 2011
Event Location
London, England
Abstract

Defra stated that UK organisations could make £7m a day in energy efficiency savings, equating to £25 billion worth of cost reductions for UK plc. Energy is currently a cheap commodity and even with smart energy procurement most organisations could be wasting up to 40% of their spend. We will show you firsthand examples of how organisations have transformed their energy and cost base through integrated carbon reduction strategies with little or no upfront investment. With the recent Energy Market Review (EMR) and the government putting a carbon floor price in place, energy
costs are likely to dramatically increase over the next few years. Finance officers are now responsible for the vital
role of reducing energy (carbon) costs whilst managing cost volatility and meeting government targets and reporting requirements. Your challenge is in building an integrated sustainability strategy that enables you to make informed investment decisions based on the right quantitative and qualitative data and supported with appropriate return on investment modelling. As leaders, you constantly want more evidence that sustainability investments will create tangible returns but all too often investment opportunities get missed when a soft business cases are presented without the correct energy data and financial modelling to establish the true investment potential.
The Royal Mail is one of the biggest property owners, employers and logistics & distribution companies in the
world. In 2006 they embarked on an energy transformation journey that saved them £35m a year, reducing their energy spend by 45%. Dr Martin Blake, then head of Sustainability for the Royal Mail Group, who led this work, will share his experiences and insights.
Investment Grade MAC Curves
Marginal Abatement Cost (MAC) curve have been around for some time to assess government policy and national energy investment strategies. Using MAC curves in an organisational or corporate setting is a comparatively new technique and requires access to energy and investment data combined with technical informational and risk & costs modelling. When skilfully developed, a MAC curve can be a fantastic and extremely informative investment tool that allows allow you to accurately evaluate between projects and
balance ROI with carbon reduction, regulatory and financial targets.
What will you learn?
The seminar has brought together the experts who will break down the critical aspects of aligning your
sustainability strategy to a solid financial plan. This will help you reduce risks, costs and emissions at better
understood financial rates of return. You will benefit from:
• Examples of businesses cases which have supported investment decisions in creating attractive ROIs
• Understand the data requirements - qualitative, quantitative and financial - needed for accurate
business modelling
• Insights into how Marginal Abatement Cost curves really works and how it they are used to provide the
basis for investment decisions
• The necessity for embedding longer term adaption strategies into your business plans
• How to align financial and sustainability objectives to create clear actions that you can replicate

Keywordscarbon reduction; sustainable business; energy reduction; carbon price
ANZSRC Field of Research 2020350208. Investment and risk management
359999. Other commerce, management, tourism and services not elsewhere classified
350107. Sustainability accounting and reporting
Public Notes

No evidence of copyright restrictions preventing deposit. Only abstract published, as provided here.

Byline AffiliationsZero-Carbon Solutions, United Kingdom
Carbon Zero Solutions, Australia
ENERGYQUOTE JHA, Australia
Institution of OriginUniversity of Southern Queensland
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