Vattenfall - Main findings

Main findings

• It is fully possible to reduce emissions substantially
• The abatement potential is well distributed over sectors and regions
• Industry and power represents less than 45% of the total 2030 potential
• The developing world, excluding China, represents more than 40% of the total abatement potential 2030
• The abatement potential with negative cost is 35 - 45% of the total in industrialized countries
• It will demand mutual understanding, global cooperation and concerted actions
• Well-advised use of markets and price signals is of crucial importance, in addition “lubricating measures” are needed in some sectors
• The total cost for reducing emissions substantially seems to be limited 450 ppm could cost as little as 0.6% of GDP if all low-cost opportunities are addressed
• In general, newly developed technology will play a limited role up to the year 2030, but selective support to key technologies to speed up learning curves and handle risks can make a substantial difference

The mapping has resulted in two different types of findings. Firstly, we have identified the abatement potential below a specified cost level. Hence, the fundamental question is: How large is the potential for reducing emissions of greenhouse gases if we accept a marginal cost of for instance € 40 per tonne CO₂e. Secondly, we have identified the costs for different types of abatement measures. This has resulted in a marginal abatement cost curve (MAC), where the different measures are ordered from the cheapest to the most expensive ones. It is also possible to calculate the average abatement cost and the extra investment needed to achieve this abatement.