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Assessing carbon emission savings from corporate resource efficiency investments: an estimation indicator in theory and practice

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  • Jun Rentschler

    (University College London
    Payne Institute for Earth Resources)

  • Florian Flachenecker

    (University College London)

  • Martin Kornejew

    (University of Kiel)

Abstract

The Nationally Determined Contributions pledged by numerous countries under the Paris Climate Agreement refer to efficiency gains as a key instrument for achieving carbon emission reductions. Indicators for estimating emission savings from resource efficiency projects can play a key role in identifying and prioritising projects. Building on existing emission factor-based approaches, this paper introduces a methodology which allows consistent ex-ante estimation of lifetime carbon savings from corporate resource efficiency investments. This methodology accounts for the intertemporal dimension of resource savings and project lifetimes and allows consistent aggregation across resource and project types. Moreover, it shows how social benefit (or cost) can be monetised. The methodology is tested using a resource efficiency investment project under the UN Clean Development Mechanism. We demonstrate that this indicator can be a robust, coherent and practical tool for firms, governments and investors to estimate carbon emission reductions from resource efficiency investments.

Suggested Citation

  • Jun Rentschler & Florian Flachenecker & Martin Kornejew, 2020. "Assessing carbon emission savings from corporate resource efficiency investments: an estimation indicator in theory and practice," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(2), pages 835-861, February.
    • Handle: RePEc:spr:endesu:v:22:y:2020:i:2:d:10.1007_s10668-018-0222-z
    DOI: 10.1007/s10668-018-0222-z
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    References listed on IDEAS

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