Weighted Average Cost of Carbon - The Formula

The Formula

C = ((Va × Ea) + (Vo × Eo)) / L

Symbol Meaning Units
C Weighted average cost of carbon currency
Va Volume of carbon abated through internal projects and demand reduction per annum tons/pa
Ea Averaged annual expenditure to achieve 'Va' over life of projects currency
Vo Volume of purchased carbon offset per annum tons/pa
Eo Expenditure per annum to acquire 'Vo' currency
L Total carbon liability per annum tons/pa

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