What is a MACC?
A
Marginal Abatement Cost Curve (MACC) is a way of looking at the options
available to a business to reduce their carbon footprint in order to
determine which are the most cost effective. A MACC is a tool to help
make better business decisions. By looking at all options available to a
business in one picture, it is possible to see those which represent
the best 'bang for your buck'. Is it better to install solar panels or switch
to hybrid vehicles? It is more effective to upgrade office lighting or
to purchase more efficient but more expensive computers and appliances? A
MACC aims to answer these kinds of questions in order to inform smart
investment decisions. An example of a MACC is shown below.
Those
projects which fall below the x-axis may been seen as having ‘no
regrets’ as they not only pay themselves back, but they then produce
ongoing financial savings over their lifetime. Projects that sit above
the x-axis require a net investment over their lifetime and would
require greater consideration before investment. The width of each bar
represents the relative quantity of greenhouse gas emissions that each
project will save each year. The wider the bar, the greater the
greenhouse gas savings.
What are the benefits?
The
benefits of developing a MACC to inform decision making extend beyond
just environmental benefits. By finding ‘low hanging fruit’ projects
that can be implemented, the potential exists for significant cost
savings in a time of rapidly increasing fuel and electricity prices. A
MACC can also show at what point the purchase of carbon offsets becomes more economical than implementing energy or fuel
saving measures. Finally, a MACC can also show those initiatives which fall below the point of the market carbon price in a compliance situation.
How does the process work?
Working
in collaboration with Carbon House's experienced consultants, a list of
potential emissions saving projects specific to your business can be
developed. The whole of life cost
and emissions savings for each project will the be calculated including relevant financial analysis. The results
are then plotted on a MACC graph accompanied by a comprehensive report
which outlines all underlying data, calculations and assumptions and
also provides recommendations on how to best implement the findings of
your business's MACC. This stage of the process can also include the development of a 'NPV Neutral Emissions Abatement Startegy' whereby the findings of the MACC are used to maximise emissions reductions in an organisationfor the cost of effectively zero.
If
you are interested in developing a MACC for your business or to enquire about the solutions Carbon House can offer, contact us on (07) 3844
4595 or admin@carbonhouse.net.au.
Marlon Bunday (http://www.flickr.com/photos/marlon-bunday-mmx/4733588995/sizes/l/in/photostream/)
