In this video, we discuss the concept of ‘Specific mitigation costs’. This is essentially the cost per tonne of avoided CO2. It is another important cost related factor which is important in determining the feasibility of a certain emission reduction option as it gives an easily understandable metric from which different options can be compared. We end the video with an additional discussion on the differences between a ‘social’ and ‘private’ perspective of costs.

Key takeaways: 

• If a project that mitigates CO2 emissions is implemented, the specific mitigation costs must be calculated.
• The extra costs are the costs compared to a reference situation.
• There are two types of cost perspectives: social and private cost perspectives.
• Social cost perspectives do not take taxation into account.
• Private cost perspectives uses a private discount rate.
• There are various means of calculating specific mitigation costs.