Carbon Value Analysis Tool (CVAT)

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he Carbon Value Analysis Tool (CVAT) is a screening tool to help companies integrate the value of carbon dioxide emissions reductions into energy-related investment decisions. The tool has two main purposes:
   To test the sensitivity of a project’s internal rate of return (IRR) to “carbon value” (the value of GHG emissions reductions). CVAT integrates this value into traditional financial analysis by ascribing a market price, either actual or projected, to carbon emissions reductions.
To facilitate the development of emissions reduction strategies by developing a Marginal Abatement Cost Curve (MACC) across a portfolio of projects. CVAT ranks projects so managers can prioritize them according to their implicit cost per tonne of carbon emission reduction.



 



"The Carbon Value Analysis Tool (CVAT) is a screening tool to help companies integrate the value of carbon dioxide emissions reductions into energy-related investment decisions."


References

  1.  "CVAT"