Financial value of carbon reductions?

There are various carbon pricing mechanisms out there, but it’s currently a financial externality in most contexts. Sometimes the prices quoted are called the Social Cost of Carbon. One example, adopted by Washington State, is here: https://www.utc.wa.gov/regulatedIndustries/utilities/Pages/SocialCostofCarbon.aspx -Kjell F

The Environmental Defense Fund has some good resources on this topic:  https://www.edf.org/true-cost-carbon-pollution
http://blogs.edf.org/markets/2016/12/08/how-companies-set-internal-prices-on-carbon/  

Lori, Kjell - thanks for sharing these resources, and Bryna for the great question. Another important factor in the overall NPV (aka NDV - Net *Discounted *Value) is the *discount rate* used - i.e. is the rate used status quo (which literally devalues the future...sometimes to total erasure) or is it based on more emergent approaches (e.g. gamma, hyperbolic or intergenerational discounting)? Not sure if / how this is reflected in these numbers / the CBA / CEAs you're using (I only have time to skim right now, so please forgive if this is obvious / redundant), but raising in case not addressed / made explicit. J Jumping into next Zoom but can share more on intergenerational discounting if of interest (exploring as part of my PhD...but I'm still in fledgling stages) jennifer cutbill, architect AIBC FRAIC LEED GA | she / her / they principal |* lateral agency* c 604.368.1980 www.lateralagency.ca | Instagram #Architects*Declare* | #Architects *Divest* | #Architects*ACT* *#Stand*withGreta | * #Stand*withWetsuweten and Indigenous Land Defenders generally | * #Design*for*Future* *The lands on which I live, practice and play are the unceded (i.e. stolen) indigenous territories of the xʷməθkʷəy̓əm (Musqueam), sḵwx̱wú7mesh (Squamish) and sel̓íl̓witulh (Tsleil Waututh) Nations. With an open heart I seek to listen, to learn, and to do good work so we can, together, restore right relations and r**egenerate our capabilities to be ever better stewards of all that is local - now and for future generations. * On Tue, Feb 2,

See below for World Bank Carbon Pricing, click ETS and Pricing you will see carbon prices in different ETS around the world. https://carbonpricingdashboard.worldbank.org/map_data A couple things to think about: 1.  How to buy a ton of Carbon in China for $4 and sell it in EU for $30 and "artbitrage"?  $26 on a ton of carbon is pretty nice money. 2.  If Washington Utilities and Transportation Commission website has the social cost of future carbon.  Why not discount the price of future carbon into current using simply inflation (if the money just sit in a bank), or, return on carbon investment (kind of like return on equity, but carbon)?

Carbitrage! Good points, Luke Chris Flint Chatto AIA, LEED AP BD+C Principal ZGF ARCHITECTS LLP T 503.863.2324 E chris.chatto@zgf.com 1223 SW Washington Street, Suite 200 Portland, OR 97205

Autocase might be another tool to use. I recently did a quick, high-level Triple-Bottom Line analysis in Autocase that focused on various levels of reduction for both operational and embodied carbon. The study was for an interview, so I have to admit it was very precursory but it was interesting to see how they allocated results between environmental and social benefits. Autocase adjusts for NPV and provides information on their sources and data.