TOOL TO CALCULATE THE COST OF YOUR EMISSIONS

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THE CLIMATE CHANGE CHALLENGE

One of the tools to carry out a climate risk analysis is the construction of future scenarios . For the risks associated with the transition to a low carbon economy , a tangible measure to build scenarios corresponds to carbon pricing . The foregoing serves to see how a company or organization would be affected in each of the analyzed scenarios, and to identify how the projections of emission reductions and growth of companies influence the impact of transition risks , for example that of a carbon price.

Below is a tool that allows estimating the costs that a company would face if it is affected by a carbon price instrument based on the Carbon Footprint . These cost trajectories do not consider investment expenses or expenses related to the implementation of technologies or mitigation efforts. Three benchmark emission scenarios are built plus one of your own where you choose your emission reduction by 2030.

Fixed scenarios:

  • Scenario "business as usual" (BAU): Increase in production at a constant rate without mitigation of emissions by the company, but considering the decrease in the emission factor of the National Electric System (SEN) due to a greater participation of renewable energy and the withdrawal of coal-fired plants. Therefore, the results of these projections are limited to Chile.

  • This scenario is consistent with the objective of limiting the increase in temperature to 2 ° C at the end of the century, which means a reduction in emissions of 33% compared to the BAU 2020 base year by 2030.

  • Scenario consistent with the goal of limiting temperature rise to 1.5 ° C by the end of the century, which means a 48% reduction in emissions compared to the BAU 2020 base year, by 2030.

 
 

Data required to create your carbon price and emissions scenario

Enter your Carbon Footprint data       * **:

The carbon footprint is an indicator of transition risk. If you still don't have yours, contact us!

Choose the value of your parameters:

 

For the price we recommend the following values:

  • 5 USD  (BAU price)

  • 14 USD (price in line with national policies that are going to be implemented)

  • 32,5 USD (the social price of carbon)

  • 50 USD (price in line with 2ºC)

  • 135 USD (price in line with 1.5ºC)

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Cost estimates according to carbon emission and price scenarios

* Your entered data is confidential, we do not save the information.

** Only scopes 1 and 2 of the carbon footprint are considered for the estimation of the trajectories. This is because each company considers different limits in its value chain to determine scope 3. In the case that you want to see how the costs of scope 3 will be transferred, this can be added to scope 1 when entering the data. 

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Sources:

1) Current carbon tax price. Article 8 of law 20,780.

2) Long-term energy planning (period 2018-2022). Ministry of Energy, 2019.

3) Estimation of the social price of CO2. Ministry of Social Development, 2017.

4) Carbon Pricing Leadership Coalition, 2017.

5) Report "Mitigation Pathways Compatible with 1.5 ° C in the Context of Sustainable Development". IPCC, 2018.

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Disclaimer: Los resultados obtenidos en esta calculadora son primeras apoximaciones en base a parámetros básicos. Se recomienda al usuario realizar los cálculos considerando las variables específicas a su situación y considerar los que aquí se entregan a modo de referencia. 

How are these figures obtained?

1) The growth of Scope 1 emissions and the price of carbon are linear.

2) Scope 2 emissions are calculated using the SEN's projected emission factors.

Sources:

- Projection of plant retirement and growth of the electrical matrix, Ministry of Energy.

- Intergovernmental Panel on Climate Change (IPCC).

- Carbon Pricing Leadership Coalition.