Decision Criteria for Climate Projects

Summary This article analyzes commercial decision criteria for climate projects. The latter will normally be executed by private players, for whom decision criteria developed from a commercial perspective are important. But such criteria are also important for the government in calculating the size of subsidies required for various measures. A ranking of different solutions in a socioeconomic context must rest on calculations made from a commercial perspective. Examples of the subjects covered include the calculation of abatement unit costs and cost estimating for climate projects. The carbon-capture project at the Kårstø gas-fired power station in southwest Norway is used as a case throughout the analysis.