The Weighted average cost of carbon is used in finance to measure a firm's specific cost of carbon. It expresses how much an organization is expending to either reduce carbon emissions internally (abatement) or offsetting externally (carbon offset). As such, the weighted average cost of carbon is the cost a company incurs to balance its carbon liability (carbon footprint).
It is a term with growing importance as legislation globally moves to internalize the impact of CO2 emission through cost mechanisms.
Read more about Weighted Average Cost Of Carbon: The Formula, How It Works, Relevance
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