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Humans contribute to climate change by emitting greenhouse gases into the atmosphere, via activities such as: burning fossil fuels for energy; deforestation and land use changes; agriculture and livestock husbandry; waste disposal; and cement manufacture and other industrial processes. Mitigating the human contribution to climate change requires some combination of (a) reducing greenhouse gas emissions from their source activities, and (b) removing greenhouse gases that are already in the atmosphere. Together, these methods constitute greenhouse gas abatement. Each of the various abatement methods has its own combination of potential and cost: how many tonnes of carbon dioxide equivalent it can abate, and the direct monetary cost per tonne.McKinsey & Company has developed marginal abatement cost curves to provide a simplified rank-ordering of multiple abatement methods on a single graph. These graphs have been widely cited and/or reproduced, for example in IPCC Assessment Reports, numerous media articles, blog posts, lectures, etc. This publication describes the assumptions and calculations behind these graphs.From the publishers description:It is possible to reduce greenhouse gas emissions by enough to contain global warming to two degrees Celsius, but only if all major regions and sectors take ambitious action within the next few years. This 2010 report builds on our first global study published in January 2007 and subsequent national studies. It includes an updated assessment of the development of low-carbon technologies, of macro-economic trends and a more detailed understanding of abatement potential in different regions and industries.Whilst leaders in many nations discuss ambitious targets for reducing emissions of greenhouse gases (GHGs), there is also an intense debate underway regarding the technical and economic feasibility of different target levels, what emission reduction opportunities should be pursued, and the costs of different options for meeting the targets.To provide a quantitative basis for such discussions, McKinsey, supported by ten leading global companies and organisations—The Carbon Trust, ClimateWorks, Enel, Entergy, Holcim, Honeywell, Shell, Vattenfall, Volvo, WWF—has assessed more than 200 GHG abatement opportunities across 10 major sectors and 21 world regions between now and 2030. The results comprise an in-depth evaluation of the potential, costs, and investment required for each of those measures.
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