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Marginal Abatement Cost

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Per-measure cost of CO₂ abatement in USD per tonne CO₂ avoided. The building block for a fleet-level MAC curve.

Formula

$$ \text{MAC} = \frac{\text{Capex}\text{annual} + \text{Opex}\text{extra} - F_\text{saved} \cdot P_\text{fuel}}{C_\text{avoided}} $$

Symbol legend

SymbolMeaningUnitSource
$MAC$Marginal abatement costUSD / t CO₂result
$\text{Capex}_\text{annual}$Annualised capital cost (loan + depreciation)USD / yearfinance model
$\text{Opex}_\text{extra}$Incremental annual operating expenseUSD / yearengineering estimate
$F_\text{saved}$Fuel saved by the measuret / yearengineering estimate
$P_\text{fuel}$Bunker priceUSD / tbunker index
$C_\text{avoided}$CO₂ avoidedt / year$F_\text{saved} \cdot C_f$ or direct

A negative MAC is a “no-regret” measure - saves money and CO₂. A positive MAC below the prevailing carbon price is still economic. Ranking ascending gives the optimal abatement sequence at a target CO₂ reduction.

Sources

  • DNV - Maritime Forecast / Pathways to zero-carbon shipping.
  • IMO MEPC.80/7/8 - IMO GHG strategy levers.