The Inconvenient Math: The Implications Of Costed Carbon


Authors
Stéphane Voisin et al

Research Organisation
Credit Suisse

Report Date
Nov. 1, 2007

Document summary

In this Farsight Award winning report, Credit Suisse explores the implications of costed carbon and highlight asymmetric market pricing. The report includes the surprising observation that, without new capacity additions, the USA Utility sector cannot achieve more than a 30% reduction in CO2 emissions (all coal would be displaced). The Farsight Award judges were particularly pleased with Credit Suisse's report as they felt it challenged some of the basic numerical assumptions investors might make. Other challenging observations for the USA include - carbon will need to price above $40/ton to achieve a 30% reduction; there may not be enough natural gas; and to reach an 80% CO2 reduction (as proposed) would require: a 95% retirement of existing coal plants, 165GW of new nuclear capacity, 90 million lbs of uranium fuel annually, and $400 BN of capex.?

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