The Demand for Greenhouse Gas Emissions Reduction Investments: An Investors' Marginal Abatement Cost Curve for Ukraine

Sun Jan 01 15:24:38 EST 2012
By Daniel Radov, Per Klevnas, Martina Lindovska, and Adil Hanif with Bloomberg New Energy Finance and Global Carbon

This report, prepared for the European Bank for Reconstruction and Development (EBRD), investigates the possibilities for reducing greenhouse gas emissions in Ukraine over the period 2010-2030, and estimates their cost across a range of sectors of the economy. In contrast to other studies of this kind, the present analysis is from the point of view of a
private investor interested in profitable investment opportunities that also reduce emissions. We estimate investment opportunities, and calculate the respective costs and benefits of reducing emissions from the perspective of a commercially driven investor.

The main output of this work is an investors' "marginal abatement cost curve", or MACC. A MACC is a graphical representation of the emission reductions that can be achieved by investments in different technologies across the economy, and the corresponding benefits or costs per tonne of emissions reduced.

Another key output of this study is an analysis of the impact of policies and market conditions on investors' costs and profits. The study estimates how demand for emissionsreducing investments, and thus abatement, is influenced by specific economic and climate policies that are already planned or could be contemplated by Ukraine.

Download the report in English here.

Download the report in Ukrainian here.