How to use this calculator
- Enter annual emissions within a consistent boundary.
- Enter the internal carbon price approved for planning.
- Add a reduction scenario and annual revenue for context.
- Compare the current charge with the reduced case.
#2947 · Energy & Environment Tool
Climate Risk Carbon Cost Calculator
Estimate a probability-weighted carbon-cost exposure for a climate scenario. The tool combines emissions, a scenario carbon price, planned abatement, and your assigned likelihood to show both full scenario cost and expected planning exposure.
Calculator
Probability-weighted scenarioFormula
Full cost = Reduced emissions × scenario price
Expected cost = Full cost × probability %
Expected cost = Full cost × probability %
What the result means
The main result is the annual internal carbon charge before the modeled reduction. Avoided charge shows the financial signal attached to reducing emissions.
An internal carbon price is a management assumption. Do not present it as a statutory carbon tax or external market quote.
Example calculation
30,000 tCO2e reduced by 20% leaves 24,000. At $95, full scenario cost is $2.28 million; weighted at 40%, expected exposure is $912,000.
Tips for better results
- Use one inventory boundary across departments.
- Document whether the price is a fee or shadow price.
- Review the price on a set cadence.
- Avoid double counting reductions.
- Compare projects using the same price.
Frequently asked questions
Why include a probability input in climate carbon cost?
It creates an expected-cost planning figure by weighting the scenario cost by the probability you assign.
Should I enter tonnes of CO2 or CO2e?
Use metric tonnes of carbon dioxide equivalent (tCO2e) consistently across all emissions fields.
What happens if I enter zero?
Zero is accepted where it is meaningful. The calculator blocks negative values and any input that would make the selected scenario invalid.
How should uncertain inputs be handled?
Run conservative, central, and optimistic cases by changing the uncertain inputs and compare the resulting exposure.
Can this result be used for regulatory reporting?
It is a planning estimate only. Apply the required reporting standard, boundaries, factors, and assurance process separately.
Related calculators
Internal charge variables
| Variable | Unit | Use |
|---|---|---|
| Emissions | tCO2e | Annual inventory in scope |
| Internal price | $/tCO2e | Management planning assumption |
| Reduction | % | Scenario decline in emissions |
| Revenue | $ | Context for cost intensity |