Formula
Residual emissions = Emissions × (1 − Reduction %)
Year 1 cost = Residual emissions × Starting price
Cumulative cost = Σ Residual emissions × Priceyear
What the result means
The main result is first-year cost at the starting carbon price. The cumulative result compounds only the carbon price; residual annual emissions stay constant after the one-time reduction.
Actual compliance, tax, allowance, offset, and procurement costs depend on jurisdiction, coverage rules, contracts, free allocations, and credit quality.