What is a reasonable cost per ton of CO₂ reduced across different decarbonization initiatives, and how should companies evaluate these options financially?

The cost per ton of CO₂ reduced varies widely depending on the initiative:

Buying EACs or offsets: €1–€20 per ton (varies per region and specifications)
Energy efficiency upgrades: €30–€100 per ton
Renewable PPAs or solar: €40–€120 per ton (varies by region and project size)
Fleet electrification, heat pumps, etc.: often €100+ per ton

To evaluate options for management:

Calculate cost per ton = total investment ÷ estimated emissions reduced
Consider co-benefits like energy savings, brand value, or compliance
Compare against internal carbon price, if you use one (e.g. €50–€100/tCO₂)

Use a simple business case format: upfront cost, payback time, emissions impact, and risk level. This makes it easier for leadership to weigh the options.