Carbon Decision Making & Risk Management Tool

Carbon Decision Making and Risk Management: A Guide for Business aims to provide companies affected by carbon compliance legislation with a decision-tree type framework and software tool to identify and analyse their key exposures under the Carbon Pricing Mechanism and determine appropriate strategies to manage their carbon costs. The project was developed in partnership with Baker & McKenzie, Seed Advisory and ClimateMundial for the Carbon Market Institute
ClimateWorks Australia developed a software tool to enable businesses to better understand and manage the costs and risks of carbon compliance. Through the tool, users identify mitigation projects and permit options, which can then be analysed for performance under various carbon and energy price scenarios. Each project can be assessed based on key financial metrics such as net present value, capital requirement and payback period.
Key benefits of the tool include:
  • Energy and carbon price risk management
  • Powerful scenario testing for sensitivity and risk analysis
  • Optimisation of the make and/or buy portfolio
  • Automatic marginal abatement cost curve (MACC) generation
  • Automatic generation of detailed financial reports

More information on the project can be found here