CO2 Pricing
Location
UK
Project Type
Economics and Policy
Type of Store
N/A
Standards and Frameworks
N/A
Client
Multinational Energy Company
Impact of CO2 pricing on business model
A high CO2 in the UK will not automatically translate into guaranteed CO2 for a project. It is highly dependent on the strategy that emitters adopt in the face of increasing CO2 prices. For instance, a manufacturing plant may choose to reduce production, but a power plant might not have the same options available. Connecting to the right sources of CO2 is necessary to de-risk the business model.
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Client Need:
Understand UK Allowances price forecast and impact on CCUS business model for client’s internal use.
Description of services provided by Sproule ERCE staff:
Provide view on future carbon pricing to be used as Company internal reference, associating future carbon pricing for UKA with project longevity and sensitivity to future carbon pricing. The intent of the project was to make the client aware of potentials risks associated with emission sources and the impact of CO2 price changes.
Outcome:
Report delivered to the client.