The time-value of carbon

The report discusses the importance of considering the timing of carbon emissions in decision-making related to climate change, emphasizing the need for a nuanced understanding of the time-value of carbon to inform better practices in the built environment.

(Generated with the help of GPT-4)

Quick Facts
Report location: source PDF
Language: English
Publication date: September 2024
Publisher: Arup
Authors: Jolie Lau, Mel Allwood, Will Wild
Geographic focus: Global

Methods

The research method involved a literature review of existing arguments and methodologies related to the time-value of carbon, alongside an analysis of current practices in life cycle assessments within the built environment. The report synthesizes insights from climate science and economics to inform its conclusions.

(Generated with the help of GPT-4)

Key Insights

This report explores the concept of the time-value of carbon, which refers to the varying impacts of carbon emissions based on when they occur. It argues that emissions released today should be valued higher than those in the future due to their immediate effects on climate change. The report identifies three main arguments for this perspective: the buying time argument, which suggests that delaying emissions allows for technological advancements and adaptation; the static time-horizon argument, which posits that delaying emissions reduces their cumulative impacts over a fixed period; and the social time preference argument, which prioritizes the welfare of current society over future generations. The report also reviews existing methodologies for incorporating the time-value of carbon into life cycle assessments and highlights the limited adoption of these approaches in industry practices. It emphasizes the need for a better understanding of the time-value of carbon to support decision-making in building and infrastructure projects, which have long-term implications for climate change. The report concludes by suggesting that while reducing overall emissions is crucial, recognizing the time-value of carbon can enhance project-specific decision-making and ultimately contribute to climate mitigation efforts.

(Generated with the help of GPT-4)

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