ICF International has worked with more than 60 of the world’s leading companies by market capitalization to help develop climate strategies that are aligned with core commercial drivers.
Our approach has helped many companies translate the uncertainties around the evolution of carbon policy in different jurisdictions, the price of CO2 in the fragmented carbon markets, the paths by which low-carbon technologies will emerge, and the possible reputation-related risks and opportunities into a set of coherent scenarios through which analysis of value-at-stake and abatement costs can be undertaken. Our efforts have often extended beyond strategy design into implementation.
Our services include:
ICF’s approach involves systematically analyzing a company’s risks and opportunities across its value chain from carbon constraints, emergence of carbon markets and evolving climate policy, and developing creative and economical solutions―often saving millions of dollars. ICF’s approach was originally developed in 2001, and has been continuously refined ever since. In 2003, ICF developed a public domain version of the strategy for the Carbon Trust.
ICF develops emission abatement cost assessments at the sector and individual corporate level. Our proprietary RESPIRE® (Rating and Evaluation System for Prioritizing Investments in Reducing Emissions) model was developed specifically to aid firms in evaluating emission reduction options.
Selected Projects
Value-at-Stake Analysis
Assessing Value-at-Stake from Operating Within a Carbon-Constrained Economy, UK-Based Global Mining and Natural Resources Company. For one of the world's largest mining and natural resource companies, ICF International identified—across all seven of the company's business divisions—which operations present the most significant risks and opportunities from policy to reduce greenhouse gas emissions. ICF International prepared an initial quantification of the financial risk, which enabled an internal management team assembled from all the divisions to develop a climate change strategy based on robust analytical insights.
Implications of Global Carbon Constraints on the Transportation Fuels Business. For a major international oil and gas company, ICF was tasked with assisting senior executives in their evaluation of how the company’s main lines of business could be affected in response to international actions to limit climate change. In particular, ICF focused its assessment on the transportation fuels market, assessing how demand for fuels could change in response to climate policies and how markets would be altered as businesses and consumers responded. The key objective was to help the company determine what lines of business it might want to invest in given global market changes.
Climate Change Risk Assessment. For a major energy company, ICF evaluated the risks and opportunities posed by climate change to the utility’s operations. This work included development of an initial GHG inventory, identification of actions taken to reduce corporate GHG emissions, and formulation of strategic options to maximize climate change opportunities. The analysis was used by corporate executives to help formulate the company’s strategic response to impending carbon constraints and ongoing shareholder concern about the challenges to its business from climate change.
Workshop for European Managers on Implications of Carbon Policy Developments for U.S.-headquartered Global, Fast-Moving Consumer Goods Company, Brussels. ICF International developed and managed a two-day intensive workshop in Brussels, Belgium, for international managers from a leading, global, fast-moving consumer goods company headquarted in the United States. ICF International helped to increase awareness of carbon policy issues, presented a framework for developing a strategy, helped identify carbon impacts in the company's supply chain, and discussed potential reputation impacts from growing consumer awareness.
Analysis of the Impact of Carbon on a French Energy Company’s Strategy. ICF International assisted a leading French company interested in understanding the impact of carbon pricing on its existing assets as well proposed investments in Europe. The company has used our analysis to assess the competitiveness of gas plants vis-à-vis coal plants in the European electricity markets.
Carbon Management Strategy from the European Union Emissions Trading Scheme (EU ETS) for Large European Steel Company. ICF International advised a ferrous metals company to help determine its value-at-stake and the competitive implications from the European carbon policy. Our engagement helped to quantify the impacts on costs and revenues at operations and for specific product categories. We also examined the indirect commercial impacts caused by increasing fuel and electricity prices under the EU ETS.
Carbon Strategy for Hong Kong-based Conglomerate. ICF undertook an assessment of the value-at-stake under a changing business climate for one of the Asia’s largest business conglomerates that includes beverage, aviation, and waste management interests. ICF co-facilitated a two-day workshop of senior executives to help design a carbon strategy and action plan.
Emission Abatement Cost Estimates
GHG Emissions Management Protocol Development and Emissions Reduction Opportunities. ICF assisted Duke in preparing its GHG Emissions Management Protocol to estimate and value its GHG emissions assets. This protocol comprises part of ICF's Greenhouse Gas Emissions Management System (GEMS®), a Microsoft Excel-based inventory tool allowing for easy-to-use submissions by individual business units within a company and efficient, automatic roll-up at the corporate level. ICF International recommended optimal protocol elements and prioritized (by cost and potential scale) internal and external emissions reduction options. ICF then developed the Duke Energy Protocol by proposing a system of industry-standard best practices for GHG estimation and measurement. The Protocol was implemented throughout its electric generation, merchant power, and natural gas gathering, processing, transmission, and distribution operations. We prepared its fugitive and vent methane emissions protocols anddesigned a GHG emissions management and database program. ICF is supporting the company to develop its emissions management strategy that minimizes its risks and maximizes competitive options.
Valuation of Landfill Gas Emissions Reductions for Confidential French Industry Client in the Waste Management Sector. ICF International has been retained by a France's largest waste manufacturing company to help explore opportunities for extracting value from landfill methane emission reductions from sites in Central and Eastern Europe (CEE). ICF International is exploring the incentives currently in place in the CEE region for extracting value through several routes including the emerging European market for greenhouse gas emission reductions, and schemes to promote renewable energy, including pan-European tradable green certificate markets.
Domestic and International Marginal Abatement Cost (MAC) Curves for High Global Warming Potential Gases, Multiple Clients. ICF has more than a decade of experience developing national and global marginal abatement cost (MAC) curves for greenhouse gases (GHG). For the past eight years, ICF has been assisting the U.S. Environmental Protection Agency (EPA) in developing international MACs for non-CO2 GHGs and integrating results with models used by economic modelers. Specifically, ICF has developed international MACs for the following sectors: coal mining, natural gas systems, petroleum systems, landfilling of wastes, livestock manure management systems, nitric acid production, adipic acid production, semiconductor manufacturing, magnesium production, primary aluminum production, electric power systems, HCFC-22 production, refrigeration, air conditioning, aerosols, fire extinguishing, solvents, and foams. For these sectors, we developed a detailed MAC for the United States and MACs for specific countries and regions. For each mitigation option, ICF evaluated the capital and operation costs of the technology or the benefits in term of cost savings, and the emission reductions.
ICF has developed international MACs under separate contracts to the U.S. EPA, the International Energy Agency Greenhouse Gas R&D Programme (IEAGHG), and recently for the New Zealand Ministry for the Environment. The results of ICF’s analysis for the EPA can be seen in the report, Global Mitigation of Non-CO2 Greenhouse Gases. An example MAC analysis at the local/regional level can be seen in ICF’s final report prepared for the California Energy Commission, Emission Reduction Opportunities for Non-CO2 Greenhouse Gases in California.
Government of Ireland’s Strategy Under the Kyoto Protocol. During the Irish Presidency of the European Union in 2005, ICF supported development of Ireland’s strategy for meeting its Kyoto Protocol commitments. Our analysis helped the government understand the tradeoff between competitiveness, equity considerations among sectors, and economic efficiency. Our approach involved calculating the likely distance to target in 2008-2012, assessing the impacts of policies and measures to reduce emissions, and developing an Ireland-specific marginal abatement cost (MAC) to help determine how responsibility for closing the gap should be allocated to sectors participating in the EU Emissions Trading Scheme (ETS), those sectors outside the EU ETS, and to government purchase of carbon credits.
